Good morning, everyone. Let's get started now.
welcome to the october 9 hearing on economic development hosted
by myself and my colleagues, assemblywoman buttenschon.
let's see. We are going to give asd five
minutes-- esd five minutes for testimony and if you need more
time after that, we'll give you more time and then we'll go to
questions. Okay.
are you ready? Go ahead.
>> I just want to say good morning to everyone and I
appreciate our colleagues being here also.
so again, chair stirpe and I sincerely appreciate those that
have come in to do testimony today and more importantly, to
hear from you so that as chair of small business, we ensure
that the foundation of those businesses throughout the state
of new york can continue to thrive.
so, again, thank you, everyone. >> would you guys like to say
anything? >> just say thank you for being
here. >> any other comments?
no? Okay.
all right. Thank you.
you can get started now. >> good morning.
thank you chairman stirpe, chairwoman buttenschon and
distinguished members of the state assembly.
my name is hope knight. I serve as president and c.e.o.
of empire state development and commissioner of the department
of economic development. I'm joined today by esd chief
operating officer and deputy commissioner kevin younis.
new york's economic resiliency remains strong despite federal
uncertainty. As new tariffs and failed
policies create economic head winds nationally, we are taking
proactive measure to mitigate impacts and identify
opportunities for growth and help businesses and stakeholders
navigate these challenges. We have diversified our economy,
continue to support small businesses and created new job
opportunities for all new yorker s.
since governor hochul took office, new york has gained more
than 800,000 new private sector jobs, a growth rate of 10.4%
outpacing the national rate of 8.6%.
esd is taking an active role in analyzing the impacts of
tariffs. At the governor's direction, esd
to provide a comprehensive tariff report and understanding
of the reeled world consequences that federal policies have
imposed on our economy. This will lead to better equip
the state's businesses we created a user friendly tariff
guide and launched an online tariff impact survey for
businesses to share direct feedback.
over the past year, eds expansion in rome.
this project, which will be the largest investment in natural
food manufacturing in the nation , will create over 1,000
jobs and use 12 million pounds of milk per day, all sourced
from new york farmers. Which I bony is locating it's
project on the site prepared under esd new york program cho y
chobani is one of several companies making up new york's
ecosystem which continues to grow under governor hochul's
leadership. At esd we recognize a thriving
economy needs a skilled workforce.
I'm proud to share that through the on ramp initiate workforce
development training will soon begin at temporary facilities in
syracuse. This commitment to expanding our
workforce will continue throughout the state at the
initiatives three other centers located in the capital region
finger lakes and mohawk valley. And provided through the office
of strategic workforce development.
central to esd mission is removing barriers for new york's
small businesses which represent over 90% of the state's business
community. And we want to thank governor
hochul and the state legislature for their support.
this year's budget effectively doubled funding for the
new york's link program, to an unprecedented $1.1 billion.
this program provides lower interest rate loans to micro and
small businesses which is increasingly important during
this time of rising costs nationally.
we are continuing our commitment to new york's minority and women
owned business enterprise community and addressing
workforce disparities. Over the past year,we have
maintained the nation's highest mwbe partnerships rate at more
than 32% and streamlined the certification process
significantly decreasing wait times for applicants.
furthermore, in partnership with the legislature,we recently
extended the mwbe program through 2028 and are launching a
comprehensive policy study to provide recommendations on how
to further strengthen and improve the program.
I am proud of the strides we've made this year.
we are building a more resilient, equitable and
prosperous new york for all and we are doing it together.
thank you for your continued support and I look forward to
our ongoing participate partnership and I'm happy to
take your questions. >> okay.
thank you. You know, I would like to focus
a little bit on workforce development.
I know that we have appropriated a great deal of money over the
last four budgets, probably close to a billion dollars in
workforce workforce development. Sometimes I hear that it's very
difficult to access the funding. I don't know exactly what the
process is, but if you could tell me how much of that funding
has actually gone out into training programs, how much is
still available, and what the process is by which-- and I
would say some not-for-profit organizations, who do some
specialized stuff, especially with people who maybe have had
or been incarcerated or had other issues that they have
dealt with as we are looking desperately for people to fill
all these jobs. So, can you give me a little
information on that? >> absolutely.
so the entire workforce development effort across the
state is spread across a number of agencies.
esd has stood up the office of strategic workforce development
in the 22-23 budget. We were allocated $150 million
to support that office and effort, really focused on
providing support to train workers for high-skilled jobs:
we have put forward a new strategy, sort of enhanced
strategy to provide workers with wrap around services, so, as you
talk about not for rost,-- not-for-profit, we are asking
workforce providers to join in consortiums to have
not-for-profits that may provide support like mentoring or child
care or transportation in trying to remove barriers that are
created for folks that want to access training and employment
so we have provided $68 million in grants of that $150 museum--
$150 million to p 7 workforce organizations and we are working
with 500 business partners, so folks that are actually hiring
these people that are being trained.
and we are seeing success with folks getting trained in areas
like construction and photonics and areas in the semiconductor
sector, that are providing living wage jobs for individuals
here in new york state. >> okay.
as far as how much funding is still available to go out, do we
have any idea what that number is?
>> so in addition to the $68 million in training grants,
there is another $30 million that went out for the on ramp
program. >> there you go.
for a red-green color blind guy, these are hard to know whether
they're on. Excuse me.
we have roughly 50 of the 150 remaining.
there was on ramp utilized about 30 of the 150, the 68 hope
talked about and I think there are a couple of other programs
supported from that funding. >> has there been an evaluation
you've done on the effectiveness of these programs and, you
know,especially for training and maybe some other as nurses,
teachers, anything like that? Because I know we are struggling
in those areas, too. >> I know that some of the other
agencies have been working on training programs like for
nurses and teachers, et cetera. I would have to follow up and
find out if they've done any evaluation in those areas.
we have put out an annual report, first annual report last
year on our programs that speak to some of the results of the
office of strategic workforce development.
and the excelsior job tax credit program.
can you provide an update on the new semiconductor workforce
training program and expand empire job retention program as
far as this past year's budget? >> those are programs that we
have been working on regulations for.
we are going to post those up for comment and they should be,
you know, available in the coming months.
>> my favorite subject, centers of excellence and advanced
technology. You know, my constant question
is why we sort of keep them at the same level every year and
it's, you know, hard to get them an increase when what we see is
the return on investment in these programs is, if not the
highest one of the highest that we have in any of our economic
development programs, do you see anything in the future that
would lead us to believe that we might be able to expand in some
of these areas, provide some additional funding to see if the
return on investment continues at the same or better rate?
>> so, you know, our nystar division which oversees the
(inaudible), has a broad range of innovation assets that
support these cats and codes and enhances and lyncheses their I
am leverages their impact so we are happy to have that
discussion during the cycle. >> good morning.
thank you. We have been joined by another
colleague of ours, assemblymember dais.
thank you for being here. But ceerly my colleague asked
some of the questions but I want to switch to the tax credit
program. And I want to talk a little bit
about the small businesses that would be involved within this.
and the first question I ask is can you tell me how many small
businesses that are taking advantage of the tax credit
program that you have offered? >> and I want to confirm that
you are talking about the excelsior tax credit program?
>> yes. >> so I would have to get you an
exact number, but I know that roughly 50%, 40% of our
businesses that take advantage of the program are small
businesses. >> okay.
and is there any emphasis placed on in-state versus out of state
businesses? >> no emphasis.
we are just looking for businesses that are looking to
grow. >> beautiful.
>> that's right. >> and I just wanted to
reconfirm that because we have, as you had talked about chobani
coming, we realize that nobody can do it alone, so our small
businesses that have been 100, 50 years, are looking to see how
they can support, as new folks come to town.
but we certainly don't want to forget them.
>> absolutely. That's right.
>> is there a little bit that you could talk to about how
empire state development ensures those businesses that have been
in rooted within communities, how we strengthen them also?
>> absolutely. As you know, empire state
development has a regional office system.
so our regional directors are in touch with business
organizations; some of the businesses directly.
and we are, you know, involved in providing, you know,
information regarding access to capital, lower cost capital
opportunities, opportunities for growth when we have new
industries coming into the state and will provide small
businesses tremendous opportunities.
so we are always having those conversations with our small
business community. >> that is able to provide that
support. >> yes.
>> could we just talk a little bit about the tech transfer
program for small businesses? And primarily the question is,
again, how is the success rate on that one?
and what do we see with the sttr program?
>> yes, so as you know, thanks to the governor and the
legislature, we have this $6 million fund to provide
matching funds for small businesses that get grants from
the federal government. We have exhausted virtually all
of that $6 million for 60 companies that have won awards
in the sttr program. >> okay.
and those counties are listed on the website?
or how would I be able to brag about it?
>> we can get you a copy of that.
>> probably my colleagues would like to see it, too.
>> sure. >> all right.
how about new york rush? Another one that I do contact
your office quite frequently on. And the concern that we have in
the mohawk valley is workforce housing.
and I understand that I will continue to ask you to take a
look at the importance of workforce housing as we
understand that many individuals need housing but as we are
trying to attract individuals to the area, we need what is
identified within workforce housing.
I just wondered if there was any further conversation on how
funding could be directed to those individuals that
interested in working in small businesses or colleges or
anywhere in that effect. >> absolutely.
we foe that there is a housing crisis and then you couple that
with, you know, significant growth and specific regions
around the projects and it puts more pressure on the housing
supply. So thanks to the go rush
program, we have support for infrastructure that we are
housing that would be created. We know that a lot of the sites
around the state would require very extensive and expensive
infrastructure to be able to think about providing advancing
housing projects forward. And approximately $150 million
of the of rush fund is committed for projects that have been put
forward that are virtually shovel ready, ready to go and we
look forward to continuing to talk to communities around the
state, including yours, about advancing workforce housing and
specific communities. >> and I would sincerely
appreciate that because, again, emphasizing those individuals
that we need within our community but they need a place
to live that is something that is affordable as well as
appropriate for them and their families.
how about, as my colleague did ask many of the questions, can
we talk a little about of the-- an update on the link deposit
program that you have? >> yes.
>> and what is the average loan that you are supporting for
individuals? >> so, as you know, the link
deposit program now known as link has been available for many
years. The capacity of the program was
about $550 million. It was doubled in last year's
budget, a billion dollars. And I know that there is about
132 million-dollar pipeline of loans now in the system against
about the cap of $550 million. And so, you know, we see
tremendous uptake in this product because it does provide
a lower interest rate for small businesses, with respect to the
average loan size I have to get back to you on that.
>> okay. Downtown revitalization.
>> yes. >> as we know, the collaboration
that occurs as well as with new york forward.
is there any information that is published from your agency that
identifies the effectiveness of this program and kind of
highlights the positives? >> we have reports related to
downtown revitalization initiative projects and we can
provide those to you. >> and success rates that you
are seeing? Bragging in the last year that
you could talk about with... >> we see tremendous success in
the program. I think, you know, the program
requires communities to come together and do planning, so
just that process in itself provides a community with
tremendous assets to kind of build upon as they execute their
projects. >> and the final one is the
supportive housing. Could you just talk a little bit
about how you are working with your fellow commissioners in
regards to ensuring that individuals that need housing as
well as support? >> absolutely.
so as you know, housing is in the purview of the dhcr but I
work very closely with the commissioner in that agency to
advance supportive housing; primarily in the space where
there are state-owned facilities, kind of look at what
the opportunities are, what the needs of the community are and,
you know, advance projects where we believe supportive housing is
extremely necessary. >> thank you.
at this point, I'm good. >> member bendett.
questions? >> thank you.
I'm a small business owner and have been for 30 years.
in fact I own three different businesses.
when you talk about chairman stirpe was talking about
workforce development, what are we doing for workforce
development to get people interested in starting their own
business and helping them succeed?
when I first started, I didn't even know what a z report was.
I didn't have that information. What are we doing as a state to
encourage people to open up brick and mortar stores and
people that basically employ all the people other than the state
workforce? >> yes, so thank you for that
question. You know, we have many small
business resources available for folks that are aspiring
entrepreneurs. You can start with our
entrepreneurial assistance centers.
those are centers that give folks the ability to put
together business plan, road map for opening a business.
will be able to point them toward access to capital, you
know, whether those are community banks or
not-for-profits, that are provide small business loans.
>> and how do people find those, that information?
that's one of the challenges that I have found as a small
business owner is finding these types of things.
and I know you can do a google search but are we doing
outreach? Like yesterday we had career jam
at hudson valley. Are we doing outreach for that?
>> we are doing tremendous outreach.
we are using the organizations that exist within communities,
you know, chambers of commerce organizations, not-for-profits
that focus on advancing small businesses.
we work through the legislature and sometimes we send out, you
know, literature that speaks to events that we are having that
promote our products and services.
>> okay. And as a small business owner, I
can just say that I think we need as a state to do a better
job of getting that out there. I think people have a really
challenging time finding this information.
I had a little bit of a challenging time finding it, and
I just put on my facebook page a link to the main street grant
for small businesses. But it wasn't an easy thing for
me to find. It really was a little bit
challenging. On your new york forward grants,
as chairwoman buttenschon said, I think those are very good.
I've had three communities in my district receive them and they
have been, you know, very effective.
but I also think that they're not as much economic development
as they are monies to improve the quality of life of the
people in those villages. I don't know that they're
definitely to help small businesses.
what do you think about minimum wage and about-- I don't want to
use the word child, but I want to use the word young worker in
the workforce. Many of us in the small business
community are consistently asked by friends and family and
different community members to hire their kids to give them an
entreé into the workforce, to show them how to work and to
teach them an ethic, et cetera, et cetera.
unfortunately with the rise of the minimum wage, it's been more
challenging for people like me and my brothers and sisters, who
are in small business to help people get into that.
do you think that maybe we should have a conversation about
something like that so that small business owners have the
ability to help their communities, help their kids get
better work ethic but not have to carry the burden of giving a
kid a living wage? >> there may be opportunities to
discuss work training programs and would be happy to talk to
you about that. >> yeah, also, many of our small
businesses are the people that collect our sales tax.
that's a big part of our life, you know, we are retailers, we
collect the sales tax. We put it into the bank and we
pay it to the state. Do you think that it might be
effective in the future to consider incentivizing people to
go into small business and to be partners with the state in
collecting that sales tax? >> I think that growing our
small business community is critical and working to create
more small businesses in communities is essential.
>> we are on the same page. I agree with you 100% and I'm
willing to discuss any of these issues with anybody in the small
business community. And one of my, that I feel like
we have a shortcoming on is that we don't do a good enough job of
communicating with our small businesses.
I know you said that you have terrific outreach, but I really
do, as a person in the community, who attends chamber
events, who is close with the chamber, who knows people in
your organization and others, people have not really been
forthcoming with trying to help me.
it seems like it is more of a reactive approach than a
proactive approach. Would you agree with that?
>> I look forward to working with you and the community and
the organizations there to really push out the information
and resources that we have to deliver to small businesses.
>> yeah, I think we really need to.
thank you very much. >> thank you.
>> member dais. >> good morning, commissioner.
>> good morning. A couple quick questions.
first on workforce development, last week on september 30 I held
a rally for veterans around veteran poverty.
about 35% of our veterans are struggling, 65% are doing well.
we have a lot of veteran-owned businesses in new york state
that we need to support. But my question on workforce
development is what are we doing as a state towards workforce
development for veterans; for example, I was with gary from
the building trades helmets to hard hats.
what is your organization doing in reference to veterans?
>> so we work with workforce development providers that do
significant outreach to veterans.
and we look at fields such as construction in the
semiconductor area as well as advanced manufacturing.
so we definitely work with organizations that are focused
on helping veterans. >> and veteran businesses?
>> we have resources to support businesses like access to
capital and other technical assistance.
and we definitely outreach to them as well.
>> do we have a good centralized-- I have been
working with the legislature for centralized information for
veterans. Do you think we can streamline
funding for these veteran-owned businesses better and if so, how
would you go about that? >> I would like to talk to you
more about that. We have streamlined a lot of our
processes to provide access to our resources businesses
including veterans. >> okay.
a quick flip. In reference to economic
development on our small and medium-sized businesses which
you focused on. Tariffs are taking a small chunk
out of our small businesses. Some of our large corporations
they love the tax breaks they're receiving but our small and
medium-sized businesses are getting crunched.
you mentioned chobani, one of our largest use of dairy
farmers. I know it's not the agricultural
committee but our agricultural industry is getting really
squeezed. The parts that they need to use
for their tractors, even john deere tractors, the parts come
from other countries. What can we do to support our
agricultural as a city, assemblymember, how can I
support the north country and other businesses that are key to
new york state's economy as they're or dealing with the
tariff situation? >> so you know, this summer, the
governor directed esd to do a couple of things around tariffs.
particularly esd put together a tariff guide to support
businesses that were managing tariffs, providing information
on how to mitigate the impact, some export guide information,
et cetera. And so we put that out there to
support small businesses, how to manage tariffs better.
we have also put together an online survey to collect
information with respect to how tariffs are impacting businesses
across the state. And we expect-- we are getting
some of that information and synthesizing it to better
understand how to help businesses that are or dealing
with tariffs. >> I think my time is up.
>> member lemondes. >> thank you, chair stirpe.
thank you for being here. I just want to read a brief
statement and I will ask several questions.
the premise is energy, as all businesses, we know all
businesses need energy. Goldman sachs research institute
estimates 160% growth in data center power demand by 2030.
only five years from now with a potentially representing 19% of
that demand by as early as 2028. Other states are facing similar
challenges with virginia already experiencing energy drains from
a.I. Data centers. Do you support bringing nuclear
plants back online or exploring other innovative solutions like
small modular nuclear energy? >> so thank you for that
question. We joined nyserda last week at a
nuclear summit that focused on advancing nuclear to new york.
the governor is taking the lead on this discussion and knows
that we need a large mix of energy sources to power the
industries of the future. And so the governor has
definitely, you know, voiced that moving advanced nuclear
forward is something that new york state is look at.
>> that's fantastic. That's a very big departure from
her previous position over the last several years.
we all know how important energy is.
and as you know, we pay for businesses, 50% higher than the
national average for commercial energy in this state and 62%
higher for residential energy. So all of our-- everybody in
here, every rate payer in this room is watching their energy.
no matter what you put in to create efficiency in your own
use, personal use or business use, your bill is skyrocketing
upward in this state and having a devastating impact on our
businesses, especially heavy, commercial energy intensive
businesses and I represent a steel plant in my district.
and there is no way, ever, that they're going to use solar
energy to do what they do. And this is more of a statement,
but my question at the end of this is: I sure hope that there
is recognition that we are paying too much.
and the notion that rate payers are going to pay for solar and
wind and all of this other stuff and the school bus initiative.
that doesn't work in my district.
you can't use electric school buses in winter conditions in
hilly terrain. They just don't work.
so is there recognition that this comprehensive
new york state energy policy has to be reviewed and has to be
changed? >> so new york state is going
through a planning exercise with respect to energy.
nyserda is taking the lead on creating a new york state energy
plan. We know that we need a range of
energy sources to power industries of the future and
provide more capacity that will be needed.
>> that's fantastic. I hope that we recognize our
need for alternative energy. Thank you.
thank you, chair. >> let me say we have been
joined by a couple more members. Daniel norber and judy griffin.
I want to take this opportunity, member tapia got some
miscommunication. She thought this was down at 50
broadway and she is sitting there waiting to ask questions.
I promised I would ask her questions for her.
so I will do these as quickly as possible.
good morning, commissioner knight.
my first question concerns the state's response to the federal
government's attack on our state we have seen the trump
administration pause or cancel funding for several projects
across new york state, including both large scale projects like
the gateway project, but also smaller projects as well.
how is esd responding to this? And is the state using funding
to back all these projects? >> thank you for that question.
you know, there is certainly a certain amount of uncertainty
with respect to much federal nund funding and esd is in touch
with our state and federal partners to understand better,
you know, what funding cuts are happening.
and we haven't had to manage through anything very specific
to our esd portfolio, but continue to monitor the
situation. >> okay.
thank you. Last year's hearing there was a
lot of discussion around mwbe. Accord together 2024 disparity
report, 15% of available firms were hispanic-owned yet their
utilization rate was only about 1.8%.
has empire state development taken any specific action since
then to close that gap? And can you share what
measurable progress has been made to increase contracting
opportunities for hispanic-owned businesses since the report came
out? >> so we have been working very
diligently in our mwbe program to increase utilization of
businesses across the spectrum. And we have been involved in
working with our agencies and authorities to give them more
guidance around the availability of has to firms.
we provide our online directory. We have been having webinars to
get agencies and authorities to understand accessibility of
these mwbes and so with respect to benchmarks, I would have to
come back to assemblywoman about that, but we certainly have been
making strides to increase utilization in the area.
>> okay. I guess this is a comment more
than a question. To express my support for the
downtown revitalization initiative application for
fordham road, while the bronx has received a dri award in
another neighborhood, fordham road remains one of our most
important commercial corridors and the dri would help
strengthen those connections and support our community.
>> noted. >> all right.
>> we are joined by senator sanders.
>> hi there. Mr. Norber.
>> thank you. Thank you very much for being
here today. As we all know, our world,
new york state the u.s. In general, we are going towards an
a.I. Initiatives. A lot of businesses are going to
be transferring over to phs ises done by a.I. Agented agents,
deliveries or other industries. Are there any types of programs
that you guys are going to be looking at or starting in order
to adapt to this new change? Maybe the programs that can
actually benefit businesses that want to start use using a.I.
because is something that is going to be happening, no
question about it. Are there things that you guys
are looking at? >> we know that a.I. Action in
businesses is happening rapidly and the response to that is this
last past budget, harmony a.I. Was passed and a common of that
is to provide training to small businesses with a.I. Tools.
we are working with our eac, entrepreneurial assistance
centers to roll that program out, and we should be-- I think
we are in the process of hiring a vendor to deliver it and
should be delivering it in the coming months.
there will be training for businesses across
new york state. >> yes.
>> to adapt to this? >> to provide tools for aicht,
that's right. >> so there is an effort to push
businesses to that? I'm just asking, what is the
opinion that... >> we know that it is coming so
we want businesses to be prepared.
>> I have a question regarding, has there been any progress of
achieving the goal of 100% broadband connectivity in the
rural areas in new york state? >> yes.
so we have just-- the comment period ended just a couple of
weeks ago, and we were able to submit our application to the
federal authorities and to ntia. And we are waiting to, you know,
get awarded this funding so that we can roll the program out.
>> have there been delays on that?
>> there were a few delays on that, absolutely.
>> okay. But you see it happening this
year? >> we do.
we think it's going to happen in the coming weeks, months.
>> okay. >> in terms of being awarded the
funding. >> thank you very much.
>> member griffin, do you have a question?
>> thank you, chair. I have a question about the
policy study on the mwbe program.
I just wondered, how are you con-- are business owners being
contacted to find out about the program and services or like who
will-- how will the study be done?
who are you asking for information from?
like their experience with this program?
>> yeah, no, thank you for that question.
yeah, as you know, the disparity study was completed last year
and working with the governor and the legislature, this policy
study was agreed to. And effectively what the policy
study is going to do is provide context for the disparity study.
I think provide a brief legal analysis, understand utilization
patterns better and make recommendations to strengthen
and improve the program. We will be issuing an rfp at the
end of this year to hire a firm to do the policy study and focus
on those items that I just mentioned.
>> okay. Thank you.
and I know many minority and women owned businesses in my
district, 8021 on long island, a lot of them come to me and they
just don't know how to get started.
they don't know, like where they can avail themselves of services
, they don't really know how to get certified.
and I wondered is there a contact that I can direct them
to, an actual person to maybe help transition them into this
system? Because I feel like there is a
lot of minority women-owned businesses that are not part of
the program and don't know how to be part of the program.
>> so we would be happy to work with your office to provide a
contact person. We have been having forums
around the state to provide exactly the information that you
are talking about. We had one about a week and a
half ago in southeast queens abutting long island, to provide
that information to small businesses that are interested
in the mwbe program as well as certified mwbes to help them
have greater access opportunities throughout state.
>> okay, great. We'll touch base off line.
thank you so much. >> senator sanders.
do you have a question? >> yes, sir.
first I would like to thank the chairs for allowing me to sit in
with you. I appreciate the courtesy.
I want to-- good morning, good morning.
good to see you again. I want to speak of the studies
that you are doing. I applaud you for doing the
policy study. It's good to understand the
bigger picture of things. And I suggest two things to you.
the first, of course, is that we really drill down on the
disparity within the disparity ies as has been alluded
to earlier by one of my assemblymember colleagues.
the disparity within the disparity, the decision and
recent supreme court decision allow extra help or extra work
for those people in the disparity within the disparity.
the second is consider, in new york city they give a grade
to how agencies are doing, on how they're doing for complying
with mwbe. Consider that we need to do that
up here in albany; that we need to grade the agencies and the
development ideas, whatever else is out there, we need to grade
everyone on how we are complying with the governor's edict.
consider those things. Thank you very much to the
chairs. >> you are welcome.
I have a few more questions. Has your deem determined or been
determining which economic incentive programs may shut down
due to the federal funding cuts? >> we continue to monitor the
situation. As I said, for example, the
manufacturing extension program, that funding expires at the end
of the year and we are looking to see if, you know, funding
gets extended past that time. >> okay.
of all the proposed semiconductor projects in
new york state, how many are qualifying for the green chips
tax incentive and how many are not?
>> so, as you know, the green chips incentive has a threshold
and two of our projects have qualified.
global foundries and micron. What programs do they offer to
maintain ecofriendly practices? >> so we offer incentives that
really encourage ecofriendly practices.
>> I guess two things, assemblymember.
one is we have a division that really supports small businesses
in terms of compliance with environmental regulations and
rules. It's the environmental
business-- we have a team of folks who work with businesses
all the time to help with compliance.
and then, you know, per state law, we are also required to
ensure some degree of alignment with environmental goals for the
state when we award state funding.
usually it's done through, verified the seqr process but
otherwise we engage in assessment to make sure that
folks are thinking about those goals and adhering to the
broader requirements regarding utilization.
>> okay. How does the restore
new york city program ensure projects are community-driven
and not subsidies for private developers that could afford
them otherwise, avoiding gentrification and displacement?
>> with respect to the restore program, that funding is
generally provided through the municipality to support the
project, and so municipalities really do the screen around
assessing that information. >> we understand the many
technological research and development projects around a.I.
are occurring upstate new york. How is your team ensuring the
benefits and jobs from these developments also come downstate
to communities like the bronx? >> there are a number of
projects that are going on in new york city with respect to
a.I., and you know, we work with city government to make sure
that there are opportunities for workforce kept development, for
training so that underserved communities are getting access
to these programs. >> thank you.
member buttenschon. >> thank you.
every comment and question that my colleagues brought up are
very important to me, whether we are talking about agriculture,
small business, energy costs, minority women-owned businesses
and clearly the emphasis that has been placed on our small
business and the needs they have , I have hosted roundtables
for our small business and I have heard from my chambers.
and the echoing thought is, again, they're not sure how to
navigate. And I appreciate you sending
someone to my last roundtable because the face-to-face
interaction is very helpful because it does provide that
insight. So I ask you to challenge your
team on how that can happen at a higher level to ensure that each
region of the state in new york is represented.
you also have the entrepreneurship assistance
centers. Well, where I am, there isn't
one close by, so it is a great asset.
how can we bring it closer to many of our small businesses or
what are you doing to bring them closer?
>> I think we are working with organizations within communities
that support entrepreneurship to try to bring our services closer
to the businesses where they exist.
and we can continue to work with , you know, your teams, your
organizations and communities to bring them closer and even more
frequently to the small businesses.
>> so do you have the funds to expand this program so that it
is within the regions and obviously the mohawk valley is
very near and dear to me, but I'm sure my colleagues would say
the same. >> so last year, you know, for
many years, we had 24 entrepreneurial centers.
we expanded to 26. It was done through a
competitive process. If we were to expand further,
that would have to be during a part of the budget negotiations.
>> and how much of that budget is utilized for this program?
>> they received 173,000 each. >> each one does?
>> yes. And can you talk a little bit
about the relationship between the grants for the incubators as
well as the innovative hotspots? Is there a crossover or just
talk a little bit about that. >> those are competitively
awarded. >> the incubators are called
new york state certified incubators so it's a process by
which the state does a competitive sort of solicitation
and incubators meet certain standards are provided that
certification and level of funding.
new york state incubators is the next level up.
so in addition to providing this baseline service, they're
providing an enhanced support, maybe something over and above
what the baseline services are. And they, in turn, get that
hotspot designation and they get a higher level of funding.
>> so... >> they're aligned.
very much aligned. >> how about the grant
distribution because the area that I come from, the colleges
are highly involved. >> yes, almost all instances,
there is at least strong partnership with the colleges
and universities. The hotspots, I think, receive
$500,000 a year, and the incubators are $250,000.
would I have to verify that but I think that's right.
>> 500 each? >> 500 each.
yeah. >> thank you.
>> mr. Lemondes. >> thank you.
thank you, chair. Thank you, colleagues and thank
you again for being here. One of my colleagues had brought
up helping agriculture. I want to give you a simple
scenario, and this is of a farm that came to me for help.
the minimum wage in pennsylvania is approximately half of what it
is in new york. So a slaughter run of livestock
for this particular farm, done equi distance in pennsylvania
versus a slaughterhouse in new york, the slaughterhouse in
new york costs twice as much. Is there any thought or
recognition that perhaps our minimum wage and our just cost
structure on business in general is too high?
>> so, you know, I work closely with the commissioner of ag and
markets on farm issues. So I really want to have, you
know, a further discussion with him about this.
>> I would love to be involved in that because this is what
farms, you know, as you know, agriculture is our state's
number one industry. It's my assembly district's
number one industry. If were you to walk around any
street in any one of our cities, what is our state's number one
industry, they wouldn't come up with that answer.
you know, that's unfortunate. But nonetheless, as our
businesses are being strangled by costs, and overregulation,
what are we doing simply to just remove some of those burdens so
businesses won't feel like they have to leave?
>> as you know, esd is not a regulatory agency, and we don't
look to talk to our colleagues about, you know, structure and--
>> right. It was just general in nature.
I mean this is a team sport. And if it's not looked at that
way, then we all fail is my point.
so thank you. Thank you, chair.
>> I have one more question. We talked, or you mentioned how
the process to become eligible for mwbe has been streamlined
and is much shorter because I know that my office got many
phone calls for numbers of years about how painful and how long
it took to get certified mwbe. So what actually happened?
I mean how did it get streamlined?
what are you doing that-- what are you not doing that you used
to do before? >> thank you for that question.
esd worked very hard to streamline the process, thanks
to the government and legislature providing
$11 million to do a couple of things to help us increase
staffing, to get rid of the backlog because you had a
backlog of several thousand sand applications.
we also had I backlog of appeals that needed to be gone through.
so we did staff up temporarily to get through the backlog.
we engineered our process. We didn't eliminate any of the
review required by 15a, but just streamlined and had greater
resources. You know, before we did that,
the average cycle time for application review and approval
was several hundred days. Now we quote 90 to 120 days, but
our average is about 65 days. And I think one of the big
frustrations for a lot of companies was not when they
initially became an mwbe but getting recertified, it seemed
like, you know, they were going into this endless cycle.
I'm assuming that's easier now than it used to be?
>> it is the same process, but we have, like I said, have been
able to reduce the cycle time. I would also like to note, with
the current leadership of the mwbe program, we've tried to
create much more transparency into the process and so
companies better understand what they need to put forth with
respect to recertification. >> okay.
>> thank you very much. Are we okay.
everybody is set. Thank you.
>> one more. My question has to do with
outreach regarding the proposed propelled transmission line
project. In my area nassau county, we
have northern boulevard which is the home of house of businesses,
small businesses. I mean some businesses might be
affected, some might not. Is there some type of outreach
regarding how we can help these tiny stores get through the
projects because this is not just happening in nassau county.
it's happening all over the state in one form or another.
so is there some type of way of handling this issue?
>> so, you know, I am familiar with the pipeline projects.
esd is not involved in these projects but I can certainly,
you know, check in with my colleagues at the other agencies
to see what kind of outreach is happening with the small
businesses. >> thank you.
that's it. >> thank you very much.
>> thank you very much. >> our next panel... Randy van
waggoner and dr. Christopher spence.
>> thank you for being here, as randall van wagoner from mohawk
valley community college in utica new york and you are both
doctors, dr. Christopher spence from the utica school
district that has recently added a career and tech program and
the bridge that the two of you will continue to transpire is
amazing and I appreciate that. I believe we will start with
president van wagoner. >> good morning, chairwoman
buttenschon, chairman stirpe and members of the committee.
I'm in my 19th year as president of mohawk valley
community college located in utica and rome new york.
pleasure to share testimony in workforce development grounded
in our experiences. Community colleges are power
engines of workforce development across new york in partnership
with empire state development and various state agencies, we
deliver solutions closely aligned with local employer
needs and today's workforce landscape is shaped by several
factors that place growing pressure on our workforce
systems and as a.I. Technologies accelerate, I encourage state to
strongly consider supporting community colleges to help
employers develop strategies to leverage a.I. Effectively and
retain workers accordingly. Let me share ow we have
leveraged several workforce development initiatives.
since 2017, mvcc has led advanced manufacturing and other
industries. Nearly mvcc has supported more
than 2700 apprenticeship experiences and nearly 2,000
registered apprentices across suny colleges in coordination
with new york state department of labor.
, alongside suny schenectady, we administer $23 million in
apprenticeship related funding. Mvcc created the free fast track
training model to better serve adult learners after conducting
community focus groups. And offers flee short-term
skill-based training that lead directly to quality jobs and
career pathways. Since january of 2023, almost
3,000 students have enrolled for the 70% completion rate.
and pre-fast track is amplified by outreach, 17 braided funding
streams, many of which are from the state and strategic mix of
credit and non-credit offerings that extend our community reach.
mvcc was one of four institution as warded the designation for
the win network for regional advanced manufacturing
partnership, the on ramp effort, in collaboration with local
partners we are conducting stakeholder engagement and labor
market analysis during phase 1 to inform a phase 2 proposal
which includes up $20 some will in operating and $20 million
some capital investment over the nement three years.
the on ramp center will expand the free fast track model in our
region to support major employers like the new chobani
facility in roam. The mohawk valley regional
economic development council plays a key role, three notable
examples include the recent mv power efforts where they
received 2.3 million of the 10 million grant to expand free
fast track training and to herkimer fulton montgomery and
oswego county and other suny institutions in the region.
the advanced institute for manufacturing or aim as it is
known at mvcc where we are the only community college in the
state designated as a regional manufacturing extension
partnership site. Aim supports small and medium
sized manufacturers across six counties with consulting
training and technology services and has helped create or retain
more than 2900 jobs and contributed over $245 million in
economic impact. Since 2014, mvcc has center the
hotspot grant to fund operations at the incubator, located next
to aim, the think u baiter offers meant oreship training to
entrepreneurs and helps launch nearly 20 ventures annually.
it also houses the mohawk valley small business development
center as our region is the only one to co-locate both entities
maximizing regional entrepreneurial support I urge
you to continue supporting and investing in these proven
efforts. Today is a sample of how
community colleges can maximize state resources and why they
should be seen as the most significant leaver to deploy
statewide workforce strategies. We are nimble, employer
connected and mission aligned to support economic mobility and
regional growth throughout new york.
with your continued support and strategic investments I've
mentioned today, community colleges can serve as the
foundation for new york's next generation of workforce
innovation. Thank you for your support and
type. >> thank you, superintendent
spence, please. And who do have you with you
today? >> good morning all
distinguished members of the committee, I'm dr. Christopher
spence, superintendent of schools for the utica city
school district. I'm joined here today by our
chief operations officer as well as our director of cte who have
been instrumental in this work. And so we are here today to talk
about our new cte wing that we have are happy to have brought
into fruition and designed to exspanned educational attainment
as well as occupational attainment, particularly
postsecondary opportunities within our region.
based on a work that you all have done to provide grants and
funding streams for multiple partners supporting local
businesses, we are now developing the human capital
which will help us provide the labor force for those businesses
immediately within our area. It's been an amazing endeavor
because it has been receiving sounding community support from
our local businesses that the work with us to help develop the
pathways and the content, knowledge and skills necessary
for these post secondary opportunities to come to
fruition. In other words, what skills,
habits of mine and content knowledge to students need
postsecondary in order to be immediately employable?
as we are expanding small businesses within the area we
can say definitively that we have a workforce that is ready
to engage upon graduation from high school or take those skills
and go and pursue tertiary education in business and
whatever they would like. I would like to use some of this
time here to talk about intricacies of the pathways and
how we are developing our young people to ensure immediate
success postsecondary so I'm going to allow michelle to talk
about our pathways. And just so we don't miss it,
some of the things that you are asking what pathways we are
talking about, we have our health professions, construction
technologies, advanced manufacturing, robotics,
automation, fiber opennics, electricity and so many other
high demand fields where we know there is a scarcity in the labor
force, fiber optic. >> thank you very much for
having us. >> we have a systematic k-12
approach that we have implemented in the utica city
district. We are starting in the
elementary schools with exes pose your-- exposure to business
and industry, their local community and different
occupations. We take a deeper dive in middle
school. As the students move into high
school, the cte wing is beautiful.
it's state-of-the-art. We are very fortunate when we
were planning, we are offering electricity and fiber optics,
cybersecurity, future educators, construction tech, ev auto,
advanced manufacturing, robotics, health professions
media productions entrepreneurial zone, computer
applications, business, finance and marketing and business
analytics. Students are able, once they
have had exposure k-9 they are able to apply at the end of
ninth grade in experience cte in 10-12.
one thing we have done currently because we backward designed
this, we have pre-apprenticeships so we have
pre-apprenticeship in all of the pathways and what that
pre-apprenticeship does is it allows us to connect to local
businesses. We have over 200 business
partners and it really started because it started with mack any
and we put students through the pre-apprenticeship who sent to
class and mirrored that in all of the pathways that we offer.
we work went priceses, wynne hospital, indium and prea
apprenticeship is allow students to develop technical skills,
career prad practices, work in those businesses and industries
and learning what they like, what they don't like and
connecting to their community and hopes to keep them here.
>> and if I could just expand on that.
not only are we developing or have we developed programs in
line with new york's aspire portrait of a graduate and where
we are going, we are also in discussion with our regional
partners omh and boces to talk about the ways in which we can
expand access to our cte programming so that the impact
that utica will experience is shared more broadly with our
partners in the area as we are looking to further rejuvenate
and develop this region. Along those same lines, would I
like to give chief operational officer time to talk about the
impact locally as we work with our vendors in the community and
things like that. >> good afternoon everyone.
how are you? It's a huge impact.
being in the operation side for over 22 years in the district,
we know how vital it is for the skilled labor in our community.
we know the struggle we have to fill those positions throughout
the years and know that it's a huge impact for everybody in the
community with those skilled labor positions.
and we also you through these projects feed the local economy
with those skilled labor positions moving forward.
>> I will ask my first question to mr. Van wagoner.
looking at your testimony, things seem to be very rosie.
very successful in all areas. Everything is great.
but tell me, I mean what obstacles do you see, you know,
in your community that needs to be addressed so that we can help
you be even more successful. >> I'm in my 19th year and
when I talk to my colleagues around the country, it is
reaffirmed how fortunate I feel to be in new york state and the
way in which the state values education, both k-12 and
postsecondary. However, it is a great challenge
in that all of these varied funding streams that I mentioned
that mvcc takes great advantage of and we are proud of and
grateful for the administrative costs that comes with managing
multiple funding streams when there is all of this workforce
development effort and yet community colleges at our core,
we are workforce development. When we look at our base aid,
while it has been probable the best we have ever been,
certainly in my 19 years, it's hard to look at the four-year
sector getting 3.5 times per student what community colleges
get so our-- the base infrastructure and the core of
our operation to support the workforce development is
probably our greatest challenge, to be quite frank.
and working with employers, sometimes working through some
of the with apprenticeship, the department of labor has made
great strides in breaking down red tape but there are still
miles to go. We have seen, in the last three
years, a great accelerating in the numbers that we are able to
bring into pre-apprenticeship and apprenticeship because of
changes that the department of labor has made in streamlining
the process. >> I mean I guess I would have
to agree with you, when the on-ramp program was started and
you saw all these dollars in the budget for everything, I was a
little confused as to why the majority of that didn't already
go through the community colleges since they happen to be
kind of the centers of where we would train people for high need
jobs, you know, in the area. And I'm still hoping that, as we
go through the process, we can direct more and more of that
funding to a community colleges. They have facilities, I mean
they could use some more equipment probably, things like
that. But I know in our area, onondaga
community college, we've put a great deal on their shoulder to
train all these people from micron and the supply chain
companies that are coming along with it.
nursing, all the healthcare shortages we have now.
so I think that you are correct. >> thank you for that.
if I could add one more, and really appreciate the support
with that. Looking forward, you know, the
carnegie classifications changed this past year for postsecondary
institutions which you think of r-1 research institutions and
r-2. It used to be community colleges
now there are 31 different rankings of classification for
postsecondary institutions. Community colleges are now
ranked on low, medium and high in the graduation rate,
accessibility based on pell grants and your post-graduate
outcomes and new york state, in my opinion, has one of the
weakest data systems when it comes to employment and our
ability to track postgraduate outcomes as the accountability
ramps up, I would hope that the state pays close attention to
the infrastructure that will be needed to provide those
outcomes. I can tell you 70% of our free
fast track students have completed the class but then the
extent to which I can truly get those data points on their job
placements, very difficult under the direction of the suny
chancellor, very excited about the digital transformation
effort that suny is putting in place, selecting a vendor for
non-credit data system for the entire suny system.
that is very exciting and it can help the state shore up it's
system on employment and post-graduate outcomes.
>> thank you. >> thank you again for both of
your testimony. Dr. Spence, how many students
are in the utica school system? >> as of our most recent pupil
count 9,178 in our enrollment and we have otherses in out of
district placement and charters. >> how many lang languages.
>> over 52 languages. >> I want to emphasize the
demographics of the community. And this question is to both of
you, can you talk about your partnership as you opened up the
center and worked with the college to see how the great
programs that were discussed are going to blend if a student
chooses? >> well first I think should we
talk about-- I mean we have a couple do you want to talk about
the fast track or mvcc bridge program?
>> it goes back 25 years the millennial project with the
bridge program, dual enrollment, having those in place.
the high school is literally across the street for those who
don't know. Probably 300 yards away from our
utica campus. And when it came to the-- as the
school district was designing and developing the programming
for the cte wing, our free fast track model was just coming into
play january of 23, that we sat down faculty and staff to design
all of those pathways that they spoke of.
each one of our free fast track classes, it can only be access
free fast track funding if it is in a career pathway; for
example, cdl training would be great.
get that free fast track, get that job in 12 weeks, make six
figures as a truck driver but where is the pathway with that?
so all of these programs have pathways for them.
>> I think one that is most critical for us is the one for
for the rta, teaching assistants.
we have a program where people can get a certification and
allows us to really fill high needs, critical areas within the
organization so these partnerships are instrumental
number one, it's a testament to us being a good steward of
public resources but also these partnerships helping us to
address human capital issues within the region while also
expanding educational attainment and, again, occupational attain
many. So two things we are looking at
is how are we creating opportunities for students to
fulfill their educational aspirations while providing a
pathway and avenue for students to be pursuing employment
opportunities postsecondary. And another thing that we
haven't discussed is the percentage of students that
economically disadvantaged in our school system that really
need an opportunity to postsecondary provide and find
employment and help them feed their families and support their
families. So it has been a really great
partnership and again, we appreciate the support of
assemblywoman buttenschon as you have given the district.
>> I think president van wagoner, you brought up a point
that you know I do bring up to both of you is assessment and
the importance of state dollars that have been put into these
great programs. And as you stated, you are
hiring people just to manage how we jockey everything and it is
frustrating and I understand the regulations as my colleague
brought up. But more importantly, do you see
something on your end that could be done to track those students?
and listen, I have worked with the department of labor and I
will continue to emphasize them to provide that data to you, but
is there something legislatively that we can do to help support
you or any other means to say how could you track those
students to see their success? >> yeah, right now our approach
has been we have taken what we have developed through our
guided pathways efforts with our credit students going to a
single point of contact, student support adviser, case manage
many in recent years we have done the same in the non-credit
workforce side so we have workforce navigators and it's
literally personal followup. So absent a statewide data
system, it's that personal followup and that's costly in
terms of human capital; which goes back to our base funding
challenges that we have. >> and it would be the same in
k-12. I mean we look at it
longitudinal study over time. How have people performed in the
system after looking at these different interventions as the
initiatives and the state change over time.
and hour challenge is the same. How do we track that while
managing existing student base that we have.
so to denote efficacy long-term, we need a department that is
research-based, to study the impact of our initiatives and
interventions over time whether as we are assess social
mobility, educational atiniment or occupational attain many.
there are models that do that. It comes down to what you said,
the human capital aspect of it. >> you have been to conferences
with other states, haven't seen anybody that is that could give
us a hand with that? >> I started my career in
institutional research and 30 years ago the state of colorado,
I could submit my graduation file, get the unemployment
insurance file and know where my graduates were new york state,
it is not that easy. >> it's on us is what you are
saying. >> there are special-- there is
a special mou, there are things in motion, but been working on
it for 18 years now. >> I do know of another system
that has sort of that institutional research mechanism
built in the k-12 structure. I forget the particular district
but have I colleagues that left r-1s that do that work.
human capital. It's funding, you know, to fund
a department, specifically designed to track student
outcomeses over time, we would need additional revenues to
support that type of initiative. >> and as chair of small
business, could you tell me what emphasis, as we talked about, is
the great programs you have, are placed on small businesses in a
percentage, would you say? >> I would say our cte program
is designed to do just that. As a small business owner
myself, I understand the dirth scarcity of being able to find
people to do the work, you know, the demand is growing in the
area. And as you all continue to
invest across the state and provide nishs and grants to
expand small businesses, we must-- so too must we have the
human capital and the people to fulfill those roles and so it
really is a perfect marriage and we place the emphasis,
especially as we are looking to revitalize our local economy,
when a school district wins, so, too, does the local economy
because we are providing the next generation of leaders and
employees for many of our small businesses and many of the
people that exit ours schools, we have some that directly
across from the school that became small business owners so
it's an amazing endeavor and we are looking to bridge that gap
while providing our small business owners with a citizenry
and employee base that we have done the training up front.
and that's evidenced by the certifications and pathways
because when we designed them, it was not divorced from the
business. Our captains of industry came to
us and said these are the particular skill sets we need in
order to be effective in our work and how can you design a
pathway to make sure the students post-secondary mirror
the skills needed once they enter.
less training for the businesses.
they can have more immediate I am pack and we hope to see
growth in our local economy. >> thank you.
I have to put in a plug for agriculture as well as possibly
as we know the future farmers of america program that is the
largest, with my colleagues in new york city.
so clearly we see the importance of that as well as veteran
minority-owned businesses. Thank you for your time.
>> thank you all. >> mr. Lemondes.
>> thank you, chair thank you all for being here.
I think what you are doing is fantastic.
very simple question and it has to do with chair stirpe's
initial question. He talked about, and you
responded to some of the things that you need.
could you just give a ball park of the funding that you need to
go with this additional level of support?
>> as it relates to a statewide data system, I don't even know
what a number would be on that. But what we have, the community
college sector within suny we have asked the last two years
for $100 million, which the way we arrived at that when we would
talk about the state, why is it that you take the public funding
that goes to suny four-year and suny community colleges and it's
three and a half times per student.
and yet the state is all about equity and underserved
population support and economic mobility and yet you have this
huge inequity. And the response is, it's the
county. The counties.
have you to talk to the counties.
when you look at the counties, the counties provide more than
$100 million more than the state in supporting dlujs so that has
been our ask the last two years, just come close to the dunes.
we are not even trying to get to equal the three and a half.
just equal the counties. >> thank you very much.
appreciate it. >> anybody else?
mr. Dais. >> is it still morning?
yes, it is. First off, thank you guys for
coming. I'm a big believer in community
colleges first and foremost. Actually got a lot of love for
utica. I worked over on a production
site in utica and we hired directly from some of the
community colleges there and utica is a great town, great
food and. >> ocean blue.
>> ocean blue, yeah. I also have a background in
advanced manufacturing where I worked with a community college
in california and we built an innovation center, hired
directly and they did a really good job in putting placement.
I have also did workforce development programs and the
biggest-- the thing that I hated most when you had dedicate the
young people who went through the entire program and didn't
have a job lined up for them at the end, right?
they were on their second or third strike and needed that
chance. We only have a 15-20% placement.
I wish I could get that number up higher.
so what would you recommend so that we can get those
placements, those numbers higher so that your students who do the
right things, who show up every day and work their tails off we
can get them into the jobs across the state that would help
our economy? >> yeah, did you say you wanted
to... >> I just wanted to say that our
district is pleased that in real time we have employers reaching
out to us to talk about employment opportunities once
students complete the pathways and apprenticeships and we are
working on that in real time. Do you want to say anything
about that? >> sure.
actually, on the way out here, I had a business reach out to me.
now that they know we have our cte wing, these
pre-apprenticeships, everybody wants in on that.
we are very fortunate in that way one thing that we can do is
really fine tune that pre-apprenticeship.
we want to give you the career and tech stills.
we wanted connected to the business but what is the
businesses, you know, what is their obligation afterward?
what are you willing to do to commit to these students?
people are being very creative. On the way out here, I had a
call and we are meeting next week to design a new
pre-apprenticeship but they're going to be giving students
opportunities to work at their place of business and build that
connection and jump into a pre-apprenticeship and they're
also a new york state certified apprenticeship business so they
can move their way in there. >> thank you.
additionally, what are you guys doing directly with veterans?
what is your enrollment with veterans in your schools and
what can we do to help the veterans get into the workforce
development programs to make sure they get the job
opportunities they deserve? >> I didn't hear the first part
of the question. >> veterans.
how many veterans. >> school district a little
challenging. >> I'm sorry.
>> for veterans we work very closely with the veterans
outreach center and several non-profits in the area that we
will often host roundtables of those non-profits that support
veterans. Utica doesn't have an excessive
concentration of veterans in contrast on other areas of the
state, but we have a veterans coordinator and work through,
not just the veterans but also their family members coming to
college on the g.I. Bill. >> thank you.
>> mr. Norber. >> thank you for being here
today. There are not many things
important than getting people to work after they are done with
college or high school, making sure they have the skills
necessary to get them to work and full fulfill their lives as
quickly as possible. My question has to do more with
the tracking, like you said before that is so difficult
without a statewide data system. A normal one, one that is
efficient and works. We don't really know why or how
kids or students after school are working and what is the
reason behind that? Why they can't find a job.
what is going on with them. If they're going to a different
state is important and it's important to understand what is
going on in terms of tracking of businesses businesses leaving
the state because that's something that also might have
an effect. So is there any plan to track
also businesses or-- or push more to make sure that we know
what is going on with the students?
>> I'm not aware of anything tracking the businesses but
looking at a state like texas that I think florida also have
very strong data tracking systems.
>> there you go. And that helps inform decision
makers at all levels of government as well as the
college on a daily basis where we provide-- at this time we try
to do what we can in terms of we do a high school feedback report
to all of our local school districts to give them some data
points. And for us, as I said, it just
remains a challenge. Yeah and it's-- I know it would
take time for that, but I just really appreciate the
opportunity to put this on your radar screen.
>> there are states implementing that and do have an efficient
system. Can't we just copy and paste
that and find a way to do the same?
>> not to reinvent the wheel. >> it's fascinating.
>> is there somebody you are talking to in other government
agencies? >> that, I don't know.
>> thank you. >> mr. Griffin.
-- ms. Grirve. Thank you again to chair stirpe
and chair buttenschon and welcome to all of you.
thank you for being here. My first question is to
president van wagoner. I am impressed with the programs
you have developed and the focus on workforce despite the lack of
funding, you have done quite well.
I want you to describe a little further.
you mentioned developing a.I. Programming and I wonder if you
could describe a little further what you would like to put in
place at mohawk valley? >> earlier this spring so we
have trained a couple hundred and certified more than 100
individuals working with local employers in what is a 30 day
agility challenge. We are working with human skills
that a.I. And their c.e.o. Todd mccleese who developed this,
designed for 15 minutes a day online self-paced for 30 days,
built on that notion of if you are working with a.I. On a daily
basis, for 30 days, you are going to build good habits, and
kind of the theory of action here is that if we let a.I.
happen to us the same way we let social media happen to us,we'll
end up with the a.I. Equivalent of the doom scroll where you
lose all sense of human agency and the 30-day agility challenge
is a human first method, if you will where it reinforces the
need to maintain your sense of agency with a.I. And human
skills, we believe community colleges is the mechanism, the
community college level is the mechanism to deploy this
statewide. With a.I. It's not access to the
technology. It's ac stoats right kind of
training. And we believe we have that
right kind ever training. Human skills working with suny
orange, suny adirondack, we are the first ones to come through
with mvc dr now suny broom, finger lakes, multiple colleges,
the intent is to develop some regional hubs around community
colleges to deploy this training not just to workers but to
new yorkers in general. We have it available in our
community education flyer that goes out each term.
>> it sounds like excellent idea and is there a level of funding
you believe to really accomplish the goals that you have?
>> actually we are working on a proposal on that that hopefully
we see soon. >> thank you very much and
quickly. Superintendent spence and team,
I think you have done an amazing job with your program and I
just-- we won't have time now but I think it would be
important for you to give advice to other school districts across
the state in how to replicate that in some way.
I think that would be really helpful to many districts that
we have along island and across the state.
>> anybody else? All set.
thank you very much. >> thank you.
>> I appreciate coming. >> next panel, randy wolken and
kevin schwab. >> he is accosting someone else
who just walked out. >> is everybody ready?
thanks for being here. Who goes first.
do you want to do it, randy? Okay.
>> there we go. Thank you.
it's a pleasure to be here this morning.
thank you for inviting me randy wolken president and c.e.o. Of
mack any. We are pleased for the tad's
testimony and the impact and effectiveness of the workforce
development programs that have been funded momentous and
important moment in manufacturing.
they call it the manufacturing moment, with huge amounts of
investment. Now in the central new york
region I'm sure kevin will talk about that, too but throughout
the state of new york, time of tremendous growth and
opportunity. Specifically we would like to
thank the legislature for inclusion of 1.75 million for
the manufacturers intermediary apprenticeship program in this
year's budget 500,000 for the pre-apprenticeship program.
without the support of these and our many champions in the
assembly and senate, the programs would not be possible.
it has proven to be instrumental in addressing new york's
manufacturing workforce challenges across the state,
supporting companies with literally hundreds of companies
in recruitment, skilling act acting as the intermediary and
group sponsor for what goes on with the state university of
new york and partners from manufacturers alliance
throughout every region in the state.
building on a decade of success since 2016 m wr ap has supported
apprenticeship programs for all individuals, regardless of their
work experience or academic qualifications helping employers
meet their workforce needs to grow and thrive in
new york state, this earn and learn model provides equitable
upward mobility for employees by combining both career-related
education and on-the-job training.
this comprehensive approach for the semiconductor and advance
manufacturing industry sectors broadens the talent pipeline for
underrepresented populations since just 2022, the alliance
has served over 700 registered apprenticeships with 60% being
from underrepresented populations.
new york's most robust workforce development ecosystem continues
to attract new businesses and grow existing operations such as
advancement of manufacturing such as chobani, fairlife,
micron, seamans and others are choosing new york to expand and
relocate their businesses. They're voting with confidence
that our state's ability to provide solutions to their
workforce needs. Macny is engaged in micron's
future ready workforce comisht consortium.
and leading efforts with community partners and
educational institutions to develop registered
apprenticeship program that will replicate initial success that
micron has already had with the idaho manufacturing association
and the college of western idaho which are both achieving this
right now in boise. Macny's efforts in workforce
development extend to multiple underrepresented populations in
advanced manufacturing, and thanks to the support of
new york state, legislative as well as the empire state
development's office of strategic workforce development
macny has launched a pre-apprenticeship program
focusing on women for registered apprenticeship and job
opportunities in advanced manufacturing, commonly known as
real life rosie is a program provides women with 12 weeks of
free training in advanced manufacturing, industry
certifications and empower skills such as resume
development, digital networking and confidence building.
successful participants receive up to six job interviews with
companies that offer registered apprenticeships.
in fact, new york state department of labor recognizes
real life rosies as the first registered apprenticeship
correct entry program for advanced manufacturing in
new york state. On behalf of macny and
manufacturers alliance we commend the new york legislature
for the investment and the steadfast commitment of the
advancing esd office of workforce development as a
statewide priority. Because of this investment, we
are now able to scale the program statewide, cohorts are
launched this fall in central nosh, capital region, finger
lakes, the southern tier, and more regions to be added in
2026. Also macny alliance of parter in
continue to focus on programs that provide pathways for yews,
affects several of our partners you just heard from.
to succeed in the past year we have also brought in the
rochester rtma through the finger lakes youth
apprenticeship program called fly app placing 40,000 400
students with employers. We have our partners for
education business program with over 30 years of experience.
and this closes the gap between industry and education focusing
on stem careers, engages local employers across sectors with
things such as factory tours, job shadow internships and
professional workshops and guest speakers.
in the past three years alone, 7,000 students and educators
across 36 districts have partnershipped in this
programming. Additionally the transadvance
the partner apprenticeship program for people with
intellect intellectual and developmental disabilities
within the manufacturing industry.
the program was launched in mohawk valley community college
in the utica area in center for workforce development at monroe.
the program breaks barriers for neurodiverse learners by
creating a curriculum design with comprehensive support and
arranging job interviews with signatory companies.
we connect outreach to provide technical assistance to
businesses who want to enhance the recruiting efforts.
in addition the state funding many of our participating
companies have utilized the empire state apprenticeship tax
credit that is a valuable component for manufacturers to
attract apprenticeships and mentors.
steadfast supporters of the program and look forward to the
extension. We thank you for your continued
support of the workforce efforts I've just mentioned and of
course your efforts in making new york state an attractive
place to build and grow manufacturing facilities.
>> thank you. You are next.
>> good morning, chairman stirpe, chairwoman buttenschon
and members of the committees. Thank you for having us here
today. I'm kevin schwab.
vice president of public policy and government relations with
centerstate c.e.o. In syracuse. Where business leadership and
economic development organization across a 12-county
region with businesses large and small among our membership.
every day our team goes to work with the mission to make our
region a place where business thrives.
and all people prosper. As you can see from my written
comments, I have considerably more than five minutes I've
submitted to you so I will be jumping through at different
points to try to stay close to the timeline here.
let me start with the really good news.
I will also touch on opportunities and, yeah, there
are still real challenges in front of us.
but the good news, everywhere I go, you know, the first question
comes out of peep's mouths is tell me what is going on with
micron. I can tell you that we are at
the front end of a wave of growth in syracuse that we have
not seen in generations since, in the nearly three years since
micron announced its $100 billion mission it is track
to be in the ground before the end of the year and producing
memory chip for commercial use in 2028.
the second fab on track for 2030 and micron recently opened its
syracuse office and hired dozens of people in syracuse with many
more to come. Since I provided the update last
year, we have seen significant occurrences in the central
new york economy that are very, very positive signs.
we see population growth accelerating, wages are growing
faster in our key industrial sectors and faster rate than at
state or national averages. Job growth is consistently
higher in the syracuse msa than the state average, up a little
over 2.5% to date, compared to 2024, and that compares with
1.3% job growth statewide. There are nearly 7,000 more jobs
right now in central new york than a year ago.
that growth ranks us among the top 10 nationally right now
among large and mid-sized metros.
in other words we are doing pretty well.
building permits for new housing up 57% from 2023 to 2024.
that's still not nearly enough. But it is pretty impressive
progress. And over the last sdec aid, we
have gone-- decade we have gone from an anemic of courser of
5 million-dollar a year to an average of $65 million a year.
and that's thanks to significant support from the legislature and
from the administration that has allowed us to expand our
offerings for business start-ups.
we have the largest business incubator and succeed ale rate
are into the-- accelerator in the state and one of the biggest
in the nation. Everything is great, right?
not so fast. We have more job openings than
people to fill them wee. Have incredible skills gaps.
and our city has some of the highest concentrated poverty in
the nation. That is just unacceptable and
frankly syracuse is not alone in that.
we have aging public infrastructure that in some
cases is not up to the needs of a growing community and
certainly is not up to the capacity in many cases.
and our civic infrastructure is growing quickly, too.
or at least the needs are. Think hospitals, housing,
hotels, et cetera. Housing perhaps next to
workforce, by the way, is our most daunting challenge and
certainly when asked what keeps me up at night, those are the
top two on my list and we need to leverage momentum from large
opportunities like micron to attract more companies to start
in our region and to attract companies as well.
we also need to turn this into a virtuous cycle.
you don't take your foot off the gas at this point.
you lean in, you invest more. You make the changes now that
will have an impact two generations, three generations
from now. So where do we do that?
workforce is vital. Issues-- it is key to have one
stop approaches like northland and buffalo, like on ramp that
has been talked about. Over come issues of persistent
poverty more than having workforce programs but the
supports for people who need them, including things like
benefits cliff supports and changing the way we do deal with
that right now. Site development is critical.
we have invested and we need to continue to invest in that to
attract other companies. You have heard about our energy
needs. We need to lean into that.
all of the above and yes, we are very supportive of new nuclear
energy for our region and for our state.
new business innovation is critical.
accelerated programs like 43 north, genius new york,
luminate, they have all delivered.
we need to renew the programs, not back away from them even
though some are due to expire. Tax credits for jobs in
investment. Think excelsior tax credit and
more. We need to do that as well.
I talked about angel investment tax credits.
new york really has paltry creds.
this is a place where we can make a difference for all of the
start-ups we talk about, we can be highly competitive if we are
willing to lean in and support vetches up to $500,000 in new
businesses. And I'm going to finish out with
a couple of quick things. We have done very well with our
regional council process of saying let's plan within
regions. We need to start thinking about
how do we leverage what is happening across regions.
we need to connect regions better.
we need to really think across regional economic development or
super regional economic development.
we can talk about what that looks like and connecting us
physically. High speed rail across new york
should be something that we are willing to study and follow up
on and invest. We should be connecting
everywhere from niagara falls to new york city because there are
a lot of opportunities there. People wouldn't realize that
today there are more than 20,000 people each day who travel
between syracuse, buffalo and rochester to commute.
let's increase that, let's leverage the strength of those
areas. And then finally, new york into
esd to foster an environment that promotes growth.
we are never going to be a low tax state.
I'll concede that. But we really shouldn't be 49
and 50 on the lists either. We need to make this a place
that's attractive and inviting for new businesses to start here
, businesses to move here, people to want to build their
lives here. Happy to take your questions.
thank you for having me. >> thank you.
>> when you talk about the investments needed and you talk
about workforce, you know, we've got a number of workforce
programs started, sounds like you think maybe there should be
more. So what else is really needed
beside what we are doing currently?
anybody? >> I'll start.
I mean obviously we need to continue to invest more.
I mean we've got literally tens of thousands of jobs that we are
trying to fill. So it really starting now in
that approach matters. That's the nexus of why we are
doing both our pre-apprenticeship program and
career awareness. We want to get as many
individuals who are currently in our communities employed in
these next, both next opportunities and existing
opportunities. So we need to double down on our
investments that kevin said correctly needs supports around
those investments because training alone sometimes isn't
enough. You need the supports around
things like child care and transportation.
and other ways to make sure that they both attend the training
and more importantly, once they get a job, they can keep those
jobs. >> I would add to that that
those supports are the difference for pulling a lot of
people out of persistent and even generational poverty.
it really does make a difference in terms of of the ability for
people to not only enter these programs but to complete these
programs. And once they do, that's life
changing, right? We've seen it over and over
again. When I hear numbers like, you
know, 20%, for example, completion on some programs, I
don't think that's a statement on the program.
I think that's a statement on the people's ability to make it
through those programs simply because of other factors in
their lives: I know we have seen considerably higher success
rate with some of the programs that's we have in our region,
centerstate c.e.o. Has been associated with with a number of
partners across syracuse, onondaga county and neighboring
counties in part because we begin with starting with the
companies and what their needs are, working back from that,
recognizing that you need to know that you are training
people for the right things. Finding people with the aptitude
and the interest. That means reaching out throw
community partners. Through not-for-profits that
focus on this and they be when they are making their way
through, making sure they in fact have the supports, the
child care, the stipends, the transportation supports.
and benefit cliffs are an issue and something we need to think
about. All of that has to factor into
someone's ability to make it through workforce development
program. >> I mean how do you think we
are doing as far as reaching out?
I realize you know, one of our big struggles is finding enough
workforce enough people to fill all these jobs and we are having
to go into communities we've never been in before.
that's why we need, you know, the support services all around
it, et cetera. But are we reaching enough
people doing this or is there something else we need to do?
>> I'll give you an etch. We need smart program designs
and continued supports. Our real life rosie program, in
particular, which was launched in 2023, the numbers are quite
compelling. The offer of supports, while 148
total participants, 78% completion rate, then 72% also
received certificates recognized credentials and nearly 70% have
employment. So the reality is if you have
those supports, once you find the individuals and you gets
them in there, if we continue to support them as they go through
both the preparation and the employment, we can keep them
there but we have to continue to do more and more outreach to
make sure individuals know of these program opportunities and
they can complete them. >> mr. Chairman, to answer
your question, no, I don't think we are doing fluff to reach
tout-- we are not doing enough to reach tout people yet.
this is hard work. You really need a level of trust
and confidence in communities that frankly have had reasons
not to have trust and confidence.
you need partners within those communities.
you need to build a presence there someone earlier mentioned,
you know, we have tremendous community colleges, why aren't
we funneling more through this? Community colleges should
certainly be strong and active and integral partners in this
process, but the outreach piece of this is the part that,
perhaps, they're not best providing that is something they
are incredibly good at when we are talking about training
people to provide the skills. But there is the connection
within the community that is the secret sauce to making this
work. >> so you think that the fact
that some of these new onramp centers are going to be located
deep in the communities that we're looking for these to
access these populations of people, are really the secret.
because getting them up to occ or having them even know about
what is going on at occ is more of the struggle.
>> I actually think it's the latter.
we are talking about in the example you and I are discussing
we are talking about a few short miles difference and on bus
lines. It is not impossible but people
have to know that it's there. They have to see themselves
there. They have to believe that there
is a way for them to get on the path.
and that there's something on hill for them, right?
when you go up onondaga hill to occ that is the really hard part
where community partners are critical and having a presence
within the communities that have so much disinvestment becomes
the game changer. And having the partners starting
partners in the business community so you can build a
level of confidence hey if you make it through this there's
something waiting for you. Having labors is the same.
in terms of the success of the programs you've heard we've seen
similar levels of success. But the reality is there is --
there are barriers at that time need to be overcome to get
people started. >> on your apprenticeship
programs, I mean is there a big backlog of people looking to get
into these programs? You know, we talk about
expanding them and everything. But are there people waiting now
to get in? >> we learned we need to start
with the preapprenticeship approach often time to the make
sure they have individuals ready to start in an apprenticeship
program. That is the way the programs are
now designed. If you start a preapprenticeship
program we are looking for companies.
there are not enough individuals within a company who want to
start a apprenticeship program. The good news is once there is a
pool of candidates available we will have half a dozen and
companies that want to interview them and individuals progressing
through a program and can be brought into their companies.
so, no, we don't have enough individuals there's enough
individuals both engaged and ready to go we have to do more
prep work specifically. And the company relationships
become critical making sure that companies are ready to accept
them and prepared to put them into their operations the an
entry level but on a pathway to success not just a starting job
but a future job as well. >> one of the things that I know
there are other questions, but I do want to emphasize that
connection with the companies. Being important.
not only for helping to guide the programming, but to build a
level of confidence and credibility within the students.
they know there's something waiting they can see themselves
in it they tour and build relationships with the companies
during the training. And it not only leads to better
success during the programs but we know it leads to retention
and opportunities for advancement within those
companies once they reach them. >> thank you to both of you.
I appreciate it. I'm surprised randy still talks
to me because I send everyone. I do have a question that has
been brought up number one, is the tracking.
can you talk about tracking and you talk about success, how do
you do it? Can you share the model with the
college and the high school? >> we do both share a model and
more than willing to share it others, too.
we are tracking those key statistics completion rates for
those in the preparation programs, certification rates
are they getting credentials that employers will want and
we're tracking I will call it stickiness do they stay
employed. And we have individuals we want
to circle back and give them a chance to complete the program.
I do think as you mentioned those numbers become critically
important as we continue to make these investments over time, we
will citizen to focus on those numbers.
not only did you complete training but did you get job
offers? We know retention rates go way
up when we do the supports in terms of training and
preparation. But the numbers matter greatly.
>> you do it inturnly? >> we have to do it internally.
>> how often do you track? Annually?
>> well, we'll track routinely specific to the individuals who
go through the programming, we'll track those individuals.
and then we also are tracking the registered apprentices
within the companies those are the touch companies we can have
related to the individuals and you heard in the other panel
having better data for the state would be helpful.
literally we have to track the individuals we are connected to.
>> similar to what randy is discussing we do the same.
it is how we know. Of course it's easier when you
know the companies that are dealing with.
not an advantage that our community colleges have
necessarily. Most students go through college
and they choose their path when they complete their program.
in our instances we are working directly with a cohort of
businesses as well as a cohort of students going through the
programming. And, so, those are are the
places where they are most likely to be placed.
those are the places where we can follow-up and we do treat
that as part of the support systems we're talking about.
how are they doing when they get to that company?
what are the needs? Where are they a year later?
and that is all part of the tracking that begins when they
start the program when they are identified.
so you can see how that would go through.
but it is more of a call it a closed system perhaps than the
community colleges have. >> it sounds like it's part of
the program that the student must continue to keep in touch
with you, is that a contract between you and the apprentice?
>> as kevin mentioned we have a relationship we do with the
company so we know if they are employed and working there.
so it still is voluntary generally on the participant
perspective. But they have an incentive also
to stay connected as they are looking for the next round of
employment if they are not employed where they were.
but it is the company connection that provides the most
resolution and easiest to get data we have a direct connection
and they are interested in program success.
>> I appreciate your support for start-ups.
but also as you know, the mohawk valley is rich in many
businesses, 1500 years. Can you tell me how you reach
out to them to ensure that collaboration continues?
>> yeah. I think it's our primary focus
right now we work with companies who are currently in communities
our members, as well as companies who are coming but
they don't yet have a presence. So from our perspective working
with companies is the key existing companies to make sure
they get first dibbs on the individuals going through the
programming and the other ones doing interviewing those are the
current participants in the programs in the mohawk valley
for example. They are the ones doing the
interviewing, doing the tours, and having first chance at our
participants. >> so with your question
relative to small businesses and workforce programming in
particular or more broadly in support of small businesses?
>> looking at ensuring, yes, I understand the importance of
start-ups but many of the businesses that have had roots
have worked hard have the same challenges are asking please
don't forget us. >> we are we proudly operate our
regional chamber and provide significant level of programming
for those members. And as part of the expansion of
our incubator and accelerator model we are offering more
programming to existing and small businesses to be able to
come in and frankly trying to communicate that more broadly to
companies within the region. It was part of the motivation
behind the expansion of what we were able to do.
we believe we will be able to offer a much broader range of
services to those companies and supports where needed.
>> and as you bring up chambers the importance of the cross
regional approach is my chambers would like to be a part.
how do you work to ensure the cross regional areas are heard,
satisfied and a part of the conversation?
>> I think there are really large opportunities that have
sort of developed and gone unnoticed.
in part because we've seen real success with our regional
council model. And so we wanted to build on
that. But you look at some industries
where you see huge growth potential where new york could
become much stronger if we worked across those very
regions. The mohawk valley, central new
york, downstate, finger lakes, western new york, southern tier,
all have for example, components that could make our unmanned
systems or drones industry in this state much stronger if they
work together. Advanced air mobility.
sort of a related industry. The north country.
southern tier. Central new york.
new york city. All have a compelling case to
work together on this. We've all talked about
semiconductors moving across the state and the impacts.
I think you can identify certainly industries where cross
regional focus and cooperation and building strategies could
benefit companies within all of those regions simply by working
more closely together and building or organizing
strategies. Not in silos but in
coordination. >> I think I should clarify are
you doing that now is my question and how are you doing
that? >> we are doing that in some
instances as it relates to semiconductors.
we have built what is called the new york smart I corridor the
first time we've worked in a coordinated way across buffalo,
rochester, syracuse, ithaca, and incorporating areas including
the mohawk valley into that as well where we believe we will be
able to build a stronger industry in the state by
bringing the regions together. >> I would say as a trade
association we are working with every chamber.
any chambers interested in working with us please let us
know we work with center state and so many chambers we would
love to bring our expertise and our connections and more
importantly tap into the collaborations going on
throughout the state. I'm with you, we need to
continue to do more and more collaboration if we are going to
lift industry and help communities.
>> and with the previous that testified were you aware of
their programs at utica? >> we are aware of those
programs we work with the school district as well as north valley
community college has been the most expansive of the community
colleges so far. >> and if the legislators here
three priorities what would they be for us?
>> sure. Well, you heard me talk about
the two things that keep me up at night.
and that is absolutely continuing to lean into
workforce because our growth without bringing as many people
as humanly possible along with us, really isn't a success.
right? We can do this.
we can be an example of how to holistically bring entire
communities along in a way we have not been doing it before.
housing. Housing scares me because we
know the influx of people coming and we've watched communities go
through rapid demand increases for housing and not being able
to meet that demand. New york is frankly tough for
delivering new housing. Our communities have a lot of
say. The processes take longer here.
and when we know we have an urgent need, we need to be able
to streamline that process as much as possible.
particularly, we think, in providing not only market rate
housing and affordable housing but housing in a workforce space
and they may need to be supports for the develop the of that
housings, strategies we have been working on.
and the third thing you will hear me continue to talk about
is, in fact, our ability to take advantage of the momentum that
we have in our region, spread it out further.
but also make sure we can perpetuate it invest in supply
chain companies and people starting up new companies and,
yes, supporting our existing small businesses by helping them
tap into the growth areas that are here.
those are my top three. >> I would say that power and
people are going to be necessary.
we talked about workforce but having enough natural gas and
electrons we have investment coming but the industries need
electricity and natural gas. We need all the above approach.
we talked about people, energy, I think keeps me up at night as
well. I think we need to make sure
that this is a place that sort of I will call it speed to
delivery. We need to get our approvals
done and move forward quickly because the industries existing
as well as those coming here really need to be able to move
quickly. And let's create continue to
create and advance an environment of being even more
focused on growth. New york state has this
opportunity to be a growth state again to have an influx of
population we can see a quarter of a million people move here.
let's be growth communities and the focus of the state on that
would help. >> thank you.
>> good morning. Thank you.
it is clear we need workforce development and have
coordination between the industries I have experience in
utica and lean in new york which I believe is in rome the
syracuse area. And though I represent the city
I care what happens across the state.
you have my full support on trying to fast high speed rail
makes sense industrial rail and focusing on power infrastructure
is key for our manufacturing industry.
with that said I want to make sure I want things to be made in
new york but I've seen a lot of concerns about the tariffs at
that time are squeezing some of our manufacturing industry.
the reality is there are some parts and pieces of our supply
chain we can't make here in new york.
we have to import from other areas.
and how simple it can be I love cool ranch doritos and I laugh,
no seasoning on the chip. And I saw that mccormick's is
in pennsylvania one of the top seasoning companies is facing
$140 military riff issue because spices have to be imported from
other countries. And I'm concerned about
businesses like medical supplies.
a lot of those components are made in india, and pakistan and
we manufacture it here in new york.
I'm worried about aerospace, indian corporation and alloyed
steel. These are great companies that
are hiring new yorkers but are being squeezed.
what can we do to help them? I agree we need to be less
regulation and need how we can help our businesses how do we
protect them from the tariffs that are hurting the small and
medium sized businesses? >> I think it's a challenging
time because of the uncertainty with the companies not knowing
what will the tariff people and how long will it exist.
I think as communities we need to support these industries with
complicated supply chains. And the reality is that is going
to be the case for quite a while.
we are seeing some relocation into our state obviously within
the country, too, based on what is transpiring but it is an
uncertain environment we are trying to help companies sort
through their supply chains they have to make individual
decisions and help them find as partners in the community in new
york state find suppliers within the country that they can shift
some of the production to. But it's going to be
complicated. And we were all hopeful we
settle down and know more of the landscape and I'm not sure we
do. It's challenging.
>> how do you do your forecasting?
trying to build forecasting for micron.
you don't know what your copper wire is going to cost you a year
from now and it can throw off any major production or
manufacturing. It's unfair to businesses across
not just new york but across the country.
>> very challenging. >> thank you, chair.
the bulk of my question is directed to you, but you are
both comment on it. Back to your legislative
breakfast a year ago this month three businesses present, all
three very well established new york state businesses.
two of the three said they would no longer expand in new york the
third one, the jury was still out.
I'm asking for you to comment on the ease with which businesses
can coordinate with the state for all their development needs
and growth? I want to specifically say one
thing. I remember one of them, it
struck me and I almost have the guy's words memorized because it
was so bad. He said you know when we look to
expand in inalienable, we make one phone call and 20 people
call us back all offering power, utilities, shovel ready sites,
labor, et cetera. We try to make that phone call
in new york, we've got to call 20 different numbers nobody can
make any decisions and it is a loop that we don't have time and
resources to engage in. We can't do it anymore and we
are not going to. With that level of difficulty
that our own businesses are making these decisions to expand
outside of the state, do you feel confident that we can
reduce these egregious burdens on our businesses in this state?
>> I'm of the opinion we need to make continued improvements in
the operating systems we have. I do know that we have lots of
members who would like to continue to expand here and we
need to be sensitive to that. There are other challenges as
businesses will acknowledge in other states related to power.
it is not easy to get electrons in inanna or central new york.
we are competitive to get micron to come.
I can give you three dozen organizations that are growing
and some are pausing because they are sorting out tariffs and
the impact. We need to do better.
at the same time they can be competitive.
>> sorry to cut you off. I got your response and the
essence of time. Energy.
are you advocating and do you feel like the state is listening
to our need for nuclear power? >> I do.
I think the advanced nuclear summit recently indicated a sea
change in the opportunity to do advanced nuclear and there is a
sea change looking at all the above strategy let's have
natural gas. I do think there's been a shift
and I give many people the credit for looking at all of our
needs things changed since 2019. Let's change to an all of the
above strategy. >> I want to reiterate I can
tell you something we as an organization have been urging
and we've seen just a sea change in terms of attitude towards
nuclear in the last probably three years.
definitely in the last five years in the state.
I would now say certainly what we are hearing from folks in the
industry, new york is leading into --
leaning into the possibility of new nuclear really at a level
that is on par with maybe a handful of states nationwide.
really becoming very supportive. >> wonderful.
thank you. Good news.
thank you, gentlemen. Thank you.
>> thank you to you both for being here.
this one is probably goes to randy.
I represent 8021 on long island and I recently went to a
solution workforce solution summit.
and we heard from a number of people but john was one from the
new york state innovation summit.
and what was really interesting is that he spoke about the wide
range of opportunity in the manufacturing industry on long
island it's like a best kept secret because most of the room
did not know that. He said it's difficult getting
school districts to embrace this it's also difficult to get
parents to embrace it because the parents are I iting the kids
go to the four-year college and that route.
he spoke of the great opportunity right on long island
and I know there's opportunity throughout the state.
but he expressed like that there needs to be much more
partnership outreach to bring this to the forefront so
students in high school or maybe people in a career that is not
going anywhere can know about this outlet.
I wondered you're central new york do you find that similar
situation across the state in your area?
or is it different? And what do you suggest we do
about that? >> I'm glad you brought this up.
those are considerable challenges throughout the state
and we work with our long island partners and huge opportunity on
long island. Manufacturing is the largest
industries in long island. So the way we've tried to tackle
it and we continue to work on this is to get students into
places of work. So this will put close to 400
individuals, students from high schools from 11 school districts
into factories and facilities to see these great jobs that are
high-tech and pay well. You can get right out of high
school through an apprenticeship path there are different ways to
do it and I love about registered apprenticeships you
can start at 18. One finished he is 71.
there is no reason why you can't start at any point to be in the
great paying long-term jobs we have to work with school
districts and we learned this and we brought the business and
been a part of us for 20 we need more outreach to schools.
if students can see places and spaces and go home and tell
their parents I like that job and this is my path.
by the way it doesn't preclude me from going to college but
maybe I learn and earn first and I don't have a college debt.
I do think we need to do more. We won't get there if there is
not awareness about these jobs from parents, students and
community at large, the dirty dark places and spaces that once
manufacturing do not exist anymore at all.
we need to change people's perceptions.
>> thank you. >> thank you both for being
here. I commend you guys for doing
what you are doing it's important we get kids back to
wanting to go back to work. Like we said regarding schools
it starts with that and giving them some type of incentive and
career path where they could see themselves working in
manufacturing or into jobs that probably doesn't look good
enough on social media. Because I do think it is a
cultural issue that we need to get back to and show them why
this is good for them and good for the community and affordable
for them in terms of affordability the state there is
an issue in new york state of affordability.
and a lot of kids want to stay around their parents or
communities and they want to ensure themselves and the jobs
are there but there isn't enough kids are not seeing themselves
working. I know there's programs in place
that we can try to work with. But I do think we have to get
back to the schools and to the culture and trying to have them
see themselves do just build a family and life for themselves
around these types of jobs if it is a small business or
manufacturing or industries or trucking or distribution or
warehousing and there are so many.
if they don't see themselves doing that it will be difficult
for the businesses to hire them. Do you see any types of ways
maybe on a more in terms of social media, in terms of the
way to implement that kind of idea to make them see that early
on when they are sophomores, juniors, seniors in high school?
>> I think it starts earlier than that.
and I will say one of the things that we found perhaps most
impressive in the syracuse area, I think you heard about it from
the folks at the utica school district earlier today is career
and technical education programming.
it really does provide a different way for folks to
learn. Certainly puts them on a path
where if they choose to go directly into a career, they are
able to do that. And even if it doesn't, in many
cases these are credit earning paths which will shorten the
time they are in college. And let them get that degree
faster. It tends to be more experiencal
more hands on learning. In syracuse there are more
connections to business while the kids are in school.
so if they were in utica, what kid knows what a is if his
father doesn't work there or the mother doesn't work at ttm.
how do you know what that is? So, I think, you've got those
challenges. But the other thing that is
perhaps most impressive about what we're seeing right now
happening in cte programming, is that it is just much more
innovative than what we've seen in traditional classroom
settings. And certainly in syracuse and I
suspect it would be the same in school districts throughout the
state, the graduation rate is much, much higher.
and the city of syracuse kids going through cte programming
are graduating at a higher than 90% rate.
in an urban school district. That is saying something.
so that would be the way I would approach it.
and, sure, if you want to get spokes models for medical device
companies or whatever, it might work on social media.
but I think day in and day out kind of contacts are the best.
>> I agree it starts with the hands on approach and getting
business leaders and people into schools and back to kevin's
point, the city of syracuse has half of the students at the high
school level in cte programs. I I believe we should have
student exposure to cte every high school pathway have some
industry related connection. If you don't have a chance to be
out in the community you don't for what the jobs look like.
and that goes across the board for construction.
any kind of job if you don't know what the day-to-day looks
like you have not had exposure to it you won't consider it.
new york state's effort and regions are working on this with
state ed how do we get more career exposure while you are in
high school. But I agree, we should be
talking about things in middle school maybe as early as third
or fourth grade. The truth is do people know of
today's modern jobs and skill sets needed?
they don't. >> something I believe parents
should be pushing and be involved with.
if you are saying we can do it that early on if it's working in
syracuse that kind of implementation can work
anywhere. Maybe they can see themselves
early on working in that path would be great.
>> thank you we appreciate it. Thank you.
>> next, kari puleo and bruce hairston.
>> thank you to both of you for being here.
I know you represent chambers from across the state not only
from your own perspective. I appreciate it.
please start. >> I'm kari puleo.
and this is bruce hairston. I represent the utica chamber of
commerce and bruce is just down the road in rome, new york.
together we represent over a thousand businesses across the
mohawk valley and our role is to advocate for conditions that
allow small businesses to launch, survive, grow and
sustain good jobs in our region. In preparation for today's
testimony, I met with over 25 businesses in anticipation
talking about what we're hearing from them small businesses in
every single sector of our economy, retail, healthcare,
hospitality, tech and manufacturing and this is what
we're hearing there is a common theme to their concerns.
access to capital is their top barrier.
micro businesses can not meet matching rules for state grants
and loans. They see the opportunity but the
up front requirements block them from trying.
for solo entrepreneurs who want to have employees, the
opportunities are fewer. This leads to commercial loan
customers who fall prey to predatory and unscrupulous
practices of merchant cash advance companies destroying
small businesses everyday in our community.
our programs are too complex when funds exist the number of
agencies, acronyms and timelines and complicated rules are
overwhelming. One small retailer told me by
the time I hired somebody to help complete the forms the cost
exceeded the benefit and I cannot absorb that overhead that
explains why many never apply for state programs.
heather of holland farms looked at state grant programs planning
her second location in the syracuse area but the project's
timing and stipulations meant thee could not wait for
approvals. The application was so complex
she considered hiring help and that is ridiculous for a company
that has been in business since 1955.
the project was delayed financed at a higher cost and lost
opportunities for more job creation than she originally
anticipated. Regulations and paperwork
continue to drive costs as the number two most regulated state
in the country we need to do better.
rules string teams that don't have staff as health are gates
from the bank of utica points out the administrative burden
creases cost, limits growth and reduces the number of jobs
available. Workforce and training gaps
still persist. Employees can't find stable
reliant workers. Apprenticeship programs are
helping to meet but the capacity limits in licensing restrictions
constrain how many people can enter trades.
elevated owner reports training programs hit a hard cap on
participants and how quickly apprentices can become licensed
mechanics while demand for work remains high, the limits
struggle. We also see problems with equity
and geography. Micro enterprises immigrant
owned shops and rural businesses face the steepest hurtles.
alesha gains porter captured it because she is using her revenue
to keep the doors open she has not been able to take a
paycheck. That reality must guide how
programs are designed. She has been in business since
july of 2024 and has still not taken a paycheck but there's
great things on the horizon. Bruce is going to tell us what
is working and recommendations. >> thank you for having us here
today. Thank you chairman buttenschon.
what is working? When support is accessible and
paired with technical assistance we see real results.
storefront improvements, increased customer presence and
targeted corridors and stronger capacity to secure long-term
financing the difference is capital and navigation equals
outcomes. Recommendations, practical fixes
that would make a difference right now.
create streamline micro grant checks under $25,000 with
minimal reporting. Embedded technical assistance.
fund local partners and chambers, nonprofits to help
with applications, language support and compliance.
enable faster disbursement, partial up front payments or
small awards to address cash flow constraints.
make matching flexible. Phase-in kind or reduce matched
options for qualifying micro businesses.
coordinating single one stop intake so businesses don't
resubmit the same documents across agencies.
and six, require local reporting, published aggravated
outcomes for the utica rome region so we can track benefits
and where gaps remain. >> the changes are not giveaways
they are pragmatic if businesses cannot survive the application
process or wait months for reimbursements the state loses
jobs, tax revenue and investment.
when I sat down with dan jones the managing director of wealth
management he told me two statements.
first he does not receive nor desire state financing for
anything. It's the reason many of his
peers moved to florida and he does not want to move his
family. He fold up noting there are
issues to doing business in new york state it's death by a
thousand paper cuts. Too much regulation, too many
departments to deal with, challenging labor laws, did he
mention taxes? How about energy costs a major
that inflates the cost of purchasing power for necessary
goods and services for all, especially those who make less.
and it reduces the services available to the public.
what our new york state government has done to create
the wage earner and the wealthy. >> in closing small businesses
are the backbone of our local economies especially regions
like our outside of new york city metro.
and utica and rome we see the scars of industrial decline and
the seeds of resurgence entrepreneurs launching ventures
in clean energy, manufacturing retooling, downtown
revitalization arts enterprises immigrant founded businesses and
local retail reconnecting with the community.
but to truly move the needle the state economic development
programs must be purposeful and accountable and accessible to
our businesses. In 20252026 budget is a strong
opportunity if we ensure the dollars get into the hands of
the business owner and use them effectively especially those in
historically underserved and economically fragile
communities. The chambers are ready to
partner to host application clinics, deliver technical
assistance and ensure state dollars create jobs that the are
intended for our community. Thank you again for this
invitation and for your stewardship of new york's
economic future. We look forward to answering any
questions that you may have for us.
I appreciate it. >> okay.
thank you. Let me ask, I know you said that
everything is too difficult filling out the paperwork and
doing all that. But, you know, in --
there is a small business development centers.
aren't they utilized to help with this?
they work one-on-one with businesses to do these things.
>> we consistently refer businesses to the sbdc they are
a wonderful partners but they have limited capacity as well.
the amount of advisers they host within their centers does not
meet the demands of what is out there and available in terms of
state dollars and the navigation of the process.
we are deeply in tuned with what is going on and meet with our
state partners regularly. They come in for roundtables
educational events but there is still a gap between the amount
that is needed and what is available.
>> okay. Is there some way we can
identify what the I don't know duplicative or other burdensome
things that businesses have to do?
I remember this was a longtime ago, probably between 2008 and
2010 where there was a commission that went around the
state looking to eliminate, and they couldn't find that many
things. People didn't want any
regulations or they didn't want to tell us about anything else.
that didn't really accomplish a heck of a lot.
>> one of the recommendations that we have is using empire
a.I. To review and reduce the amount of regulations that are
duplicative and looking at the policies we have within our
state to begin to streamline things.
>> okay. And I will just say this for
everybody up here, trust me, the amount of time it takes to get
money out the door any grants that are given is amazing.
and it has makes us feel almost as bad as the people who are
waiting for the money. >> yeah.
one of the organizations I talked to was the bake of utica
who manages 300 nonprofit accounts and the consistent
problems they've had to deal with because of the delays in
funding. A lot of these grants that go to
nonprofits are small and don't have the capacity and overhead
to wait, three, six, nine months over a year for reimbursement of
services. >> and many other challenges
when you have to match coming up with that money.
many businesses sometimes have to take out a loan, pay the
interest on that. Expend the funds and again you
are waiting three to six months. In some cases to get reimbursed.
there is a gap in-between I want the grant money I have to borrow
to pay for it. I know I'm getting reimbursed
but the timing of me getting reimbursed is going to put a
hinderance on my business. Changes and obstacles there.
>> yeah, that happens. >> I mean, I can understand that
there is a lot of frustration especially about the
reimbursement process the fact that you have to spend money to
get it is a problem for especially the smallest
businesses. But I don't know they have not
allowed us to change that yet. So we'll see.
okay. >> again, thank you for being
here. And I appreciate your clear and
concise ideas as well as solutions they are very
important. So how many businesses do you
hear partnering with nonprofits? I think my colleague eluded to
the difficulty of private funding.
but looking to our nonprofits for a lot of answers?
>> well, I can as one example they are reaching out and doing
a lot of work for not-for-profits as far as
helping with finances, the bookkeeping the management
services I think that is important.
so I think that is helpful for small businesses they are doing
it because they know the struggles of small businesses.
as a chamber director I'm always trying to connect my members
with entities like the hr firms and bookkeeping companies
because they don't really think about those things as much and
sometimes they get caught up in tax issues we do workshops to
get that information disseminated to small business
owners and they do a lot as well in utica.
>> what we see is that small business owners wear multiple
hats to manage and administration alone for some of
the paperwork for some of the grant programs is beyond their
capacity to actually run their business.
so you are not seeing growth because to hire somebody to
manage all of the paperwork and to streamline those processes
could be make much more efficiencies where you can see
future growth. >> and I can appreciate that as
the hosting of roundtables I know my colleague talked about
how can we connect. But most of them are doing
everything. So it's do we do it at 8:00
a.m.? 8:00 p.m.?
they are every part of their small business.
so it is a challenge and if we could streamline it with your
comments here. And I know, bruce, rome faced a
tornado recently. >> absolutely.
>> and that is where you came up with the idea of the minimum of
just the 25,000 dollar kick and I know your mayor and the city
has just approved something similar for small businesses
apply. And it is an easy form, right?
it is a quick? >> yeah, it's simple its a
survey what your intentions are for your business and gives
background for your business and asks for tax and dba program and
it is a micro grant program the city is giving them money from a
cbg fund it is a small start up thing but 100 grand to start and
the mayor's goal is approve three businesses he wants
something substantial. 2500, 5,000 doesn't impact the
small business. For his first pilot program he
is looking at three businesses maybe 35,000 apiece.
and really make significant impact.
and also it has to do with hiring maybe employing
part-time, full-time person. But it's job growth included.
I think that is I astart. It's important everyone has
access. Our role was to put it out to
our business community and give everybody a fair chance to apply
for it. Those are the things I like to
see more of. I think we can manage it.
we have a lot of partners who have experience managing grants
and doing the proper background checks and make sure there is no
fraud. We've done that when we had our
business assistance fund when we did that with the tornado.
we got together with the city. We reviewed applications and
maxed out at 2500. The city would kick in the other
25 and it was a max of 5,000. And we helped out 62 small
business owners. It was grant funded and money we
gave. The good thing it makes me proud
of our region and our area. Most of our bigger businesses
donated to the chamber to help with that part of it.
and then the city had money from the state.
and things to kick in the rest. The $5,000 helped them with
putting up panels to cover windows or 5,000 on the
insurance deductible. I know the ability for us to do
those things are out there partnering with our
municipalities our states or idc's in our communities.
>> what we've heard the common theme and you talk about
reporting and assessment, do you see that as a challenge also
with many of your businesses spending more time trying to --
>> again it's the paperwork and the follow-up not that there
shouldn't be payment work and follow-up that is necessary.
but anything we can do to streamline that so the
reimbursement comes in sooner that is part of it.
is the follow-up paperwork process reporting is so intense
for some of our smaller businesses.
we're talking about 10 employees and people are managing multiple
hats. They just forego the funding
because it eliminates the opportunity for them to grow
because they cannot hire somebody to manage the
paperwork. >> thank you.
>> good afternoon. I guess I had confusion and I
realized the manufacturing and this is rome and utica.
I will pushback a little bit on your testimony.
in reference to I think the gentleman moving down to
florida, I get it, right. I ran my small business I've
been on your side of the table where I represented industry and
you want tobies oriented on this side of the aisle on this podium
we have to represent the people. And so if we are going to try to
have a business industry that wants to pay below a living wage
we are not doing our job. If you look at the major, most
people cannot afford a one bedroom apartment in upstate new
york. Now imagine where I live in new
york city where it's almost impossible.
we have to make sure that new yorkers who are hard-working new
yorkers have a living wage. That does not mean as a state we
can't streamline our business practices it does not mean we
can't look at our red tape. New york needs to become more
efficient from a government standpoint.
but it will be hard to go back to the people of new york when
acc but c.e.o. Pay as accelerated at such a rate and
major has moved at a snail's pace and we have to lift it from
above middle and down to make new york affordable in some
realm. >> I think when we heard
business owners complain about major we are thinking about the
entry level jobs we had as a teenager.
the jobs that gave you a skill set that got you in the door
that taught you to be on time and listen to your manager those
entry level jobs where you are not supporting a household and
family and how that increases the cost of goods and services
for everybody. >> so my colleague brought up
the case young people, 18, 19 and 20 and and there's 18 and
19-year-olds supporting themselves.
how do we separate that from 18 and 19-year-olds versus the 18
and 19-year-olds living in their parents' house.
when it comes to regulations and laws it creates a complex
situation where if we try to cut out these specialized that we
cut the little caveats out and that is creating the red tape
because you need to have the compliance aspect to say, oh,
worker a and b qualify for the wage where worker c and d does
not and creating the same issue you are bringing to us where we
need to streamline the red tape. >> a perfect example I was the
director of the ymca before I took this position we knew the
major was going up and we tried to budget for it as a
not-for-profit is difficult it is a thin line.
I made $100 this year or I'm in the red.
the thing that was interesting is when I left there, after $15
I had lifeguards who were 15, you can guard.
and they were negotiating with me on pricing.
you know, I can go to verona state park and make $22.
wow we've turned the corner here.
I have somebody who hasn't worked a lick in their life and
they are negotiating with me. I just tell you that because
this is wow it's difficult. And I looked you had to earn
your way and progress and I'm sure most of you looked at it
that way, too. And I said you go ahead and do
that she came back and asked me if there was an opportunity for
her to work. The major really does have a
significant impact on small businesses and not-for-profits.
I can't speak for the for-profits because I know the
big banks and all that, they do well and they bring in revenue
I'm not saying they are not impacted but for the small
business owners it's really making a significant difference
in how they operate. That's my point.
I understand where you are coming from for sure.
regulations shouldn't be the reason we have it keep everyone
in an even playing field. Thank you.
>> thank you. >> thank you, chair.
thank you both for being here. My question is simple.
this is anecdotal from feedback I've gathered in talking to
people business owners and it's about the grant process itself.
I'm not talking not-for-profit, but for-profit entities mostly
agricultural. And the feedback is consistent.
and it goes like this... I can't allocate 40 hours of
personal labor to a $10,000 grant.
and both of you have eluded to this.
and I'm just curious if you hear the same thing?
where businesses are just saying it would be great but it's so
upside-down. >> it is.
>> and the burden of the burden of documentation that a business
is required to provide is the biggest discriminator for people
and businesses being able to utilize these grants.
I'm curious if you're seeing the same?
>> yes. I heard that time and time
again. The regulations the paperwork
the documents that exist within the state.
you submitted it for you already have that information why am I
submitting it again? Across different application
portals consistently. >> and even for the minority
women owned businesses I've sent people on the website and I
follow-up a couple weeks later and I don't have time to do
that. I can't navigate that stuff.
it's time consuming and I understand the detailed
information that is needed or required.
because I know everyone is afraid somebody putting in
information or defrauding the state, but they won't do it and
it's frustrating for me because I think it is a benefit once you
get through the hurdle. But, again, it requires time and
resources they can't allocate. >> so have you seen in your
careers and evolution where it was ever more efficient, easier,
business friendly, for businesses to engage in these
opportunities to where we are today?
or no? >> as the director of the ymca I
wrote a number of grants from foundations we have in our
community. The process is a lot easier.
and it is a lot informal but they still require basic
information. I've also been involved in state
grants as far as getting building funds and things.
I've worked with my c.e.o. And we have to sit in the office
together and take weeks the a time to put the information
together that is how long of a process it is.
it definitely makes a difference in regards to the types of
grants you are going for. State grants are very
challenging. Federal grants are even more
challenging than the state. You guys have something to hang
your hat on. >> thank you.
>> thank you for taking the time to be here today.
my question has to do with the people that they hire a small
business or any type of business that wants to hire to get the
grants whether federal or state grants they have to hire
somebody to fill out the paperwork.
especially if you are looking for sba loans it's impossible
without having someone as a mediator between you and the
sba. Is there any type of regulation
on these people who are hired? Or how much they can charge and
fees or anything like that? >> I don't believe so.
a lot of times it is a set fee. We never say that you should
offer a percentage of a grantor something like that a concrete
fee is best. You see malpractice where you
see people who write grants and want a percentage of the grant
versus this is the fee to do the work.
>> does it help you if there's somebody to mediate between
yourself and the sba? >> I think it would be helpful
to business owners. >> I definitely think so.
right now I get a lot of the calls and I would love to help
but we're a two-person office. So even though I have grant
experience my marketing coordinator has grant writing
experience we don't have the capacity to sit down and go
through grants. I met with a couple yesterday
and they are trying to get the erie canal in rome back up and
running a not-for-profit now. And we can give you a list of
grants. I will try to provide a grant
writing class to help our business owners out that is
something I plan on doing in the near future.
they are willing to try and take a stab at it. Willing to take
a stab at it but it's a lot if you haven't done it before.
that's all we can do is to try to give them information.
but if there were a pox, somebody we could staff to
assist with that, that would make a tremendous difference in
regards to the paperwork for those types of things.
>> it could be very convoluted for what I understand, depending
on the type of and how much money.
it could be millions of dollars in sba loans.
>> even a part-time position would be beneficial.
I'm trying to figure out ways to hire someone part time so we can
help with some of those things. I think it's critical to our
businesses to have access to some of those programs that esd
offers and right now I can send them a flyer but they look at
it, like I don't really understand how I go about this
and again we can only put so much time into giving that
assistance as a two-person office.
>> I think when you are talking about equity and growth, your
mwbe businesses that have maybe never been aware of the process
or entered versus our legacy companies and the awareness.
so if you are looking to grow companies, it's that kind of
position that could assist those smaller companies and growth.
>> another question regarding minimum wage.
are you spoking to a lot of businesses affected by it or the
chance that there might be another increase in minimum wage
at the state level? >> yeah,.
>> I guess I hit on a... >> I mean my background, I used
to be a union representative. So I come from different places
where I see the value in the increases and the minimum wage
increases and as a not-for-profit, I saw the
effects of how it significantly impacted our budget.
so as a small business owner, my father was in new jersey, so I
feel like I have a good rant of everything going on.
I guess it's the val balance, you know.
how do you go to increase? What-- and are you doing the due
diligence to study the real impact on the small business
owner and how that's going to affect?
I know no one here wants to put anyone out of business.
I know that. I don't know you personally but
I don't think you do your jobs looking to put people out of
business or hurt anyone and it's a tough job to balance.
people need to live comfortably and new york is not a cheap
state and sometimes the businesses don't do it or won't
do it on their own. You can look at the south where
people are still making 7:-- 7 clinton 50.
people don't know that in new york.
if you go somewhere else, the minimum wage is half the price.
I don't know if I answer answered your questions because
I struggle with it. >> you did.
the questions in the south the businesses are closing down as
much as the states that are increasing minimum wage.
that's something we can look at also.
>> absolutely. >> thank you.
>> thank you. Good afternoon thank you both
for being here. I just wanted to speak about the
empire a.I. I was at the new york business
council conference recently and a lot of concerns and challenges
were echoed there. Ryan silva, head of the
new york state economic council mentioned new york state has
17 million words in regulatory language.
so his suggestion was using empire a.I. To vastly like
reduce duplicative language and outdated regulations that we no
longer that no longer apply I wondered on top of that is there
any other avenues that you would recommend be looked at?
>> first we wholeheartedly recommend that solution but I
think talking to business owners and say, literally, what is one
thing, that's what I ask them one question.
what is one thing if you were talking to the state you would
want them to know about your business and then they can start
to give you solutioned, right so really looking to business
leaders for solutions, which is what, in five minutes we tried
to come here today and do. >> I think that's great.
and one new regulation or suggestion that would be helpful
is the required local reporting so everyone knows where they
stand, what is due, what is not due, where there is disparity.
so I think that is a great idea. And stars the funding local
partners, chambers and such, I agree with that and I had
suggested that years ago. I represent a district in long
island hampstead, the largest town in america had a great deal
of funding that got funded from the federal government from
covid so one of my suggestions to the town of hampstead
supervisor was take some of that money and distribute it to the
chambers and some of the local businesses, have some kind of
maybe an application process to distribute money that could
really go a long way. That was ignored but I wondered
do you have any-- have you, beside looking for state funding
have you looked at local government funding in your areas
to see if local government would provide any funding for local
chambers and non-profits? >> I think we have been in the
conversations recently. I want to point out one thing
where you are talking about information disbursing out into
communities across new york state, every region,
every community is different. Every chamber is different.
hope knight this morning referenced how many times they
disburse their information through chambers of commerce.
you heard bruce have two staff. So what how does that
information, if the state is relying on chambers to disburse
information to a two-person staff versus centerstate c.e.o.
here, they have upwards of 50 staff, you are going to have a
very different outcome on the information getting to its
intended recipients. >> that's a very good point.
thank you. >> just waned to circle back
with you quickly, bruce, you were hiring a life guard and you
you said there was an toppings work at a state park and there
was already a discrepancy. So I heard you we'll work on
that we had to pay the 15 and the state bumped up because they
were having challenges. They were offering more money
and I said well, I guess you should go there we are already
paying top of the limit because we had to so that was kind of
the conversation and then she wanted to negotiate with me
about the prices. >> and I just see that parallel
with our small businesses. Is that they feel so we are
conscious of that. >> I appreciate you because when
you are home, you have a lot of forums, you reach out to small
businesses and reach out to kerry and I, and I appreciate
you engaging us and listening to us.
that's one of the reasons we are down here.
thank you for that. >> all right.
well thank you very much. Appreciate the input.
have a nice day. >> all right, you, too.
>> now for everybody else who has been waiting, the final
panel. >> no, we have two more.
>> two more? >> good afternoon everyone and
thank you. We sincerely appreciate you
being here this afternoon and listening this morning.
so I will turn it over to my colleague.
>> now we just want you guys to get going, so who will start?
do you want to go way over here? >> thank you chair stirpe and
buttenschon. I appreciate you having us here
today. I am ashley ranslow, national
director for the national federation of independent
businesses. We represent 11,000 businesses
across new york. Our members are the traditional
small businesses you think of, right?
your local restaurants, dry cleaners, hardware store, small
manufacturers, small farms, anything you can imagine bee
probably represent somebody in that industry or in that sector.
and it has been talked about a lot today but I want to
highlight a couple of things here.
there are close this 500,000 small businesses in the state of
new york. They employ approximately 40% of
the state's private sector workforce which is over
3 million new yorkersment a staggering 98% of new york's
businesses have fewer than 100 employees so new york state's
economy is driven in such a large part by small businesses a
strong vibrant small business ecosystem is essential to the
state and 67 cents of every dollar spent as a small business
is reinvested in the local community, which is why they're
so important across every community in new york state.
unfortunately post-pandemic, there continues to be immense
financial challenges for small businesses.
you've heard about them today. Empire state development puts
out a small business report every year about how small
businesses compare from previous years and while since 2019 we
have seen a slight percentage growth in small business, it's
very small and it lags other parts of the country and there
has been a decline in employment.
even though have you seen an uptick,.
it is evident that small businesses are struggling in the
state of new york. When we talk about economic
development programs, I can't stress enough that most of the
economic development programs that are offered in new york are
not geared toward small business owners.
they are geared towards certain industries, certain sectors,
larger businesses much the programs and resource are
available, while helpful and useful are not the same that are
offered to larger counterparts of certain industries.
they're access to capital, access to loan programs, that
kind of thing, which are great if you are trying to fund
expansion or try to fund a certain endeavor but it's not
the same as a tax credit or a grant or some other mechanism
that is consistently offered in other spaces.
that's the big differential here.
when you go into empire state development's website and I play
with this tool all the time. It says what do I qualify for?
and you can put in where you are located, how many employees they
have, what seconder you are in. Think about like your local
restaurant. If you pick your local
restaurant and say I have been in business for 10 years.
I am one to 10 employees, you know, you fill it out, what pops
up at the end is, you can go talk to a small business
development center, you can get access to capital.
that's what is available to you. When we talk and they're not
available in new york. Moving forward, we recommend
that those are revisited. There are a lot of valuable
programs here in the state. Let's talk about the eligibility
criteria is is there a way to gear it to small business
owners, whether to upgrade their equipment, upgrade their
technology about being able to retain jobs.
we talk about these job retention programs in certain
sectors. Let's do that for small business
as well since they employ almost half of the state's workforce.
things like that when we need to look at eligibility requirements
and programs offered procurement is a lost opportunity.
the state spends an immense amount of money in contracts,
they know how to get procurement.
we need to make it easier for small businesses to access those
procurement contracts because that's a great way, again, of
reinvesting money into the local community and lastly, I just
want to touch on, which has been talked about today, we have to
talk about regulations and the cost of doing business in
new york whether it's energy costs, insurance cost,
streamlining the regulatory environment.
all of those things impede small business growth and if you want
economic development, have you to make sure your businesses
know or can be able to succeed and that really does come down
to the overall business climate. And with that, I will thank you
and as in my testimony, there are other recommendations as
well. But I appreciate you having me
here. >> thank you, sonia.
sonya. >> good afternoon chairman
stirpe, chairwoman buttenschon and respected members of the
committees thank you for the invitation to share testimony on
the impact and effectiveness of new york's economic development
programs. I appreciate your continued
leadership and your focus on ensuring our programs promote
equitable growth and reach all new yorkers.
I am sonya smith, state director for new york small business
development center, administered by the state university of
new york and in partnership with the u.s. Small business
administration has served new york's entrepreneurs for
over 40 years. This is a true definition of
public-private partnerships to serve all communities.
we operate 20 regional centers and 70 satellite locations
across all 62 counties providing no cost, one on one business
advisement, training and market research to 23,000 clients
annually. With the educational programming
that reaches an additional 15,000 entrepreneurs statewide.
each dollar invested in our program returns $ 3.07 in tax
revenue. Our collaborative role in state
economic development, although the nysbc is federally funded
and state supported through suny at 2.67 million, it is not
directly funded through the state's economic development
appropriation. Yet our work directly
complements and amplifies programs centered by empire
state development, the department of economic
development, and our local partners.
through partnerships with esd divisions we help new yorkers
navigate the ecosystem of statewide programs from restore
new york, fast new york, global new york and dri, and the office
of strategic workforce development.
one of our strongest collaborations with is the
division of women and minority business development that
receives 70 to 80 mwbe certification applications each
week. And the nysbc assess with 40% of
the statewide output of successful applications ensure
ensuring businesses are on the only certified by contract ready
to compete for opportunities. On average they have assisted
366 clients with procurement and contracting advisement and
trainings on these topics in addition assisted with over 28
contracts, securing and totaling $79 million.
beyond mwbe support, we also partner with esd entrepreneur
assistance centers and community organizations to create a
seamless pipeline from entrepreneur training to
business. From 2023 to 2024 nysbdc secured
over is 45 million in capital created and retained over 10,000
jobs and launched 1900 new businesses.
our client base remains highly diverse, 53% women, 41% minority
, 15% rural, 6% veteran and 2% disabled ensuring that
the state's economic growth is truly inclusive.
these numbers represent real people.
each person represents new york's commitment to
empowering small business. Despite the outcomes, new york
continues to rank among the lowest in states direct funding
for sbdc network. Over the past two budget cycles,
we've experienced significant cost pressures due to inflation,
rising wages and expenses for technology, travel and program
delivery. These factors have resulted in a
14.6 decrease in staffing and service capacity and
corresponding 30% reduction in clients served measurable
impact. For the 20 centers across
new york state, this is a reduction of one full-time
equivalent per center-for-the state program.
an equivalent investment $5 million per appropriation
would help offset the increase and sustain the funds and
strengthen new york's ability to align sbdc programs with state
funding new york cities. This would expand our reach in
under served communities and ensure continuity and high
quality business assistance statewide.
this is not just a budget issue. It's an opportunity to
strengthen our already proven partnership with deeper
integration between nysbdc, empire state development and
department of economic. We can stale the mwbe
certification and procurement pipeline, expand support for
food and accommodation industries, grow and
manufacturing programs and advance initiatives in aicht and
workforce readiness. New york's economic development
ecosystem is strongest when we leverage each partner's
expertise and data to create a continuum of support from nidh
to global competitiveness we stand ready to continue as a
strategic partner to the state, helping small businesses start,
succeed and stay in new york. Thank you for the opportunity to
share our impact and vision for continued collaboration.
I welcome any questions from the committee.
>> good afternoon., chairman stirpe, buttenschon, members.
committee, thanks for having us today.
I'm winthrop thurlow, executive director of lifesciencesny, a
statewide association of life sciences space.
our members are innovating, researching, creating and
developing healthcare products. So we are talking about drugs,
diagnostic tools, medical devices.
in many ways, our members are driving new york's economy into
the future my message to you really is simple and that is,
our members rely on many of the state services.
it's nice to sit next to jim d'agostino here and the services
that the state's maps and fuse hub offer.
those array of services, whether we are talking about the
hotspots and some of the other assets of nystar and the other
programs are critically important to the success of life
sciences industry in new york. One of the things I would say to
you is in the life sciences, we are small business, we are
medium sized businesses, we are large businesses.
our members range from start-ups to established companies that
all of you have heard about. We have tremendous opportunities
here in new york in an incredibly competitive
environment. We are competing against states
like massachusetts and california and north carolina
and minnesota we cannot afford to be left behind in that
competitive environment initiatives like empire a.I. Are
going to be transformative, initiatives like the bio genesis
park and additional investments in cell and gene therapy are
driving innovation in new york state.
those are creating businesses, creating jobs.
we have opportunities to leverage the huge attractiveness
of new york city, with an adisability to-- an ability to
create manufacturing opportunities in places that
have capacity and available workforce and a lower cost of
business. Let me give you a couple of
examples. Regeneron and the tremendous
work they're doing. Their headquarters are in
tarrytown in westchester county, it makes sense, in many ways,
for them to place their headquarters in metropolitan
new york city. Where are they doing their
manufacturing? Primarily saratoga and
rensselaer counties because it's accessible, it has capacity, and
frankly it has a lower cost of doing business: when you look
at where are the drivers in the life sciences industry,
certainly one of the leading drivers is boston.
and I would encourage this committee to take a look at what
is happening in boston. We do not need to replicate what
they're doing in massachusetts. We need to find ways to service
and be the place where talent is going to continue to grow a
short example. Take a look at wses,
massachusetts. Worcester, massachusetts, could
be any upstate new york city. It had its population zenith in
about 1950, went through a long painful decline in
deindustrialization. Over the last 15 years,
worcester, massachusetts, has seen significant population
growth that is non-immigrant related.
what it is related to is an increasing cost of doing
business in boston which is then moved these opportunities
westward. We have opportunities along the
87 and 90 corridor to bring that kind of energy to places like
the capital region, mohawk valley, central new york and
western new york to drive innovation.
I will also say to you that I have a slightly different
perspective on the regulation burden problem I've heard many
of the folks today talk about the reality is in the healthcare
development industry, we know what it is like to work in a
heavily regulated place, the bulk of the regulations that our
members are facing are really coming from washington and not
from albany. What I would encourage this
committee to think about though, to be incredibly careful as we
begin to apply additional regulatory burdens.
so, for example, in the artificial intelligence space,
quite candidly, I wish we told all artificial intelligence
stories through the lens of the life sciences because it's in
our industry that we are creating better diagnostic tools
better drugs and better devices. We need to be careful as we look
at regulating some of the concerns about a.I. That we
don't impose unnecessary burdens that are going to slow
innovation in that space. I see a red light flashing so I
will stop talking but I'm happy to answer questions.
>> good afternoon, honorable chair berns and esteemed members
of the legislature. Thank you for the opportunity to
speak today in support of additional funding for the
new york manufacturing extension partnership or new york mep.
your leadership in advancing policies that foster economic
growth, strengthen our manufacturing sector and create
high quality jobs, is greatly appreciated.
manufacturing is a cornerstone of new york's economy, employing
over 400,000 workers statewide, but our manufacturers face
significant challenges and you have heard some of them today,
including workforce shortages, global competition, supply chain
disruptions cyber security threats and the rapid pace of
technological change. New york mep is a statewide
network dedicated to helping small and mid sized
manufacturers meet all of these challenges.
through 10 regional centers and one statewide center, new york
mep has hands on assistance that improves efficiency, supports
technology adoption, strengthens workforce development and
enhances overall competitiveness.
over the last five years, new york mep has generated over
$7.6 billion in economic impact and supported more than 32,000
jobs statewide. For every dollar invested in
new york mep, new york sees a return of $125.
demonstrating extraordinary value for our economy.
new york mep work translates into measurable outcomes,
including 6555 jobs created or retained a billion dollars in
newer retained sales. $37 million in cost savings and
$190 million in new client investments.
these results ill illustrate the high return on investment in
tangible benefits that new york mep provides to manufacturers
and communities across the state.
new york mep operates as a public-private partnership,
federal funding comes primarily through the national institute
of standards and technology and new york mep also generates
revenue through project fees. Current state funding levels
limit new york's mep abilities to expand services and reach
more manufacturers, particularly as the industry faces emerging
challenges in technology, sustainability and supply chain
resilience. This is why we are requesting an
additional $2.875 million in the state's fiscal year 2025-26
budget. This funding will allow new york
mep to equip manufacturers with advanced technologies,
automation, robotics, a.I., promote sustainability and help
companies integrate green technologies in line with
new york's climate goals, support expansion into emerging
industries such as semiconductors, clean tech and
life sciences, strengthen domestic supply chains, enhance
cyber security and support reshoring initiatives and
provide workforce training and apprenticeship to prepare
workers for modern manufacturing.
let me share a few examples of new york mep's impact.
one manufacturer achieved as 9100 certification, which is a
globally rebounding sized aerospace standard, with
new york mep support, the company improved initiativecy,
reduced defects and opened new market opportunities.
new york mep helped another manufacturer provide specialized
training for machine operators, boosting productivity, safety,
morale and retention. Companies also have used lean
manufacturing techniques and strategic partnerships to
optimize operations, reduce costs and strengthen supply
chains ensuring faster production cycles and on time
deliveries. Despite these successes,
new york mep faces funding and contracting challenges that
threaten its ability to serve manufacturers.
without support, we risk reduced reach and services for small and
mid sized manufacturers, loss of competitiveness for new york
manufacturers with potential job and economic losses and reduced
access to related grant programs including smart I corridor,
build back better, blue forge, usda rural communities,
appalachian regional commission initiatives, among others.
to address these challenges,y we respectfully urge the
legislature to renew all of our sub recipient agreements for
new york mep centers by january 1 so we can continue
with state endorsement, 2: provide gap funding from january
through march 2026 until the next fiscal year budget is
passed, and lastly, include the requested additional
2.875 million for new york mep in the state's fiscal year
budget coming up. I'm out of time but I wanted to
get through the bullet points there.
thank you. >> so if I want to summarize all
of this, the great state programs that this side of the
table needs to make sure it counts and get increased a
little bit are not anything at all that helps the regular small
businesses like you said, they're not geared towards that.
they're geared towards specialized industries et cetera
and you just don't get any money so you are having a problem
keeping people and being able to provide outreach to the normal
means of people would you serve which are a lot of your people,
too probably so how do we do all this?
what would you recommend, if you were going to create a grant
program or a couple different grant programs for regular small
businesses, restaurants, you know, clubs, hardware stores,
things like that, what would you do and what would the
requirements be and how much money would you want to give
each business or up to a certain amount.
>> thank you for the request I think it's also going to be
depending on the region and the industry, I know you just talked
about retail and food accommodation in the sense that
you heard both of the chambers talk about they send any type of
whether it's sba or grant it's a county or local municipality,
federal or state grant opportunity, they try to send
those clients or small businesses to the sbdc but as
you mentioned and as I stated, it's the capacity.
the assistance is there for the administrative burden to
hopefully take that off of the small business.
and if those programs are created to help them with facade
or, you know, some equipment purchases or also going through
an apprenticeship program to learn the sbdc were hosted at
some of the community colleges. There is the opportunity to
partner with an sbdc. I think there are parameters are
having a grant program. It depends on the business and
the region and industry you are focused on there.
>> and I think assemblyman, to your question, you ask most
small business they're in the going to tell you they want a
grant, right they're really not asking for money.
that's generally not their mo, so the point I was really trying
to make if you are trying to assess and evaluate the economic
development program impact on small business, they're just
generally isn't an impact, right?
so if you want to hear some economic development dollars
towards small business there is a way to do that by changing
eligibility criteria in certain programs.
like the excelsior jobs program, for example.
the criteria was changed this last budget cycle.
the regs are out now. Esd has proposed them there are
potential changes you can look at in some of the programs to
see if there are tax credits or other things you can offer to
small businesses looking to expand job growth or what have
you I think that's an opportunity in terms of funding
and where do you get money which is always the big question and I
think that's where there are a lot of programs, pfm put out a
report last year we need to look at some of these programs that
really do a poor return on investment and is there a way to
redirected to the most dollars to something that is really just
going to make an impact on the community.
>> I would say, too, I would hope that we don't see this as a
zero sum game. Frankly while my members
certainly are in a specialized place, many of them are small
businesses. And so thank you assemblymember
stirpe for helping us to secure some money to put together a
series of investor conferences we will hold this year to
connect early stage innovators with the investor community.
those are relatively small dollars, state dollars that can
be leveraged to connect innovators with the investor
community. Frankly, I hear that same
dynamic across industries: the connections to capital are
always a challenge and if we can leverage some relatively small
state dollars to help facilitate connections to private dollars.
>> you say they're not really looking for grants or-- are they
looking for loans that are easier to center, easier to get,
easier to administer. >> loans are something to use if
you are going to grow, right? You are looking at an expansion
effort. You are trying to go into a
different direction or expand your operation or invest in new
equipment. That's when you are looking for
loans. I think the vast majority of
small businesses are saying I'm just trying to keep my head
above water and, can we find a way to make that easier and I
think that's really where they are coming from is, and you know
there have been talks about streamlining regulations and
things I've I've I will jiff you one quick example.
-- local restaurant, small business member of ours owns
multiple restaurants. He is getting ready to retire.
he doesn't want to just close them down, right?
he wants to see them keep going so he is looking at people to
sell them to. Employees who have worked their
way up into management positions to give them the next
opportunity. And he has had a couple people
and all they needed was to transfer a liquor license and it
took months and months and months and it's those types of
things that don't need to be so hard that don't need to be so
difficult, and it was he had one buyer back out because he wasn't
going to wait eight months for a liquor license, right?
and so again, that's not necessarily your purview here
but it is just an example and evidence of how hard it is and
it doesn't need to be that hard. A small business owner will tell
you, I just need to you get out of the way, right?
like that's what I'm asking to you do, and again, you know,
obviously there are things that need to be in place and et
cetera, but if we can I think, find other ways to drive down
costs, to streamline things, that's a better way of helping
small businesses. On the flip side, when you are
spending almost $10 billion a year in economic development
programs we also have to make sure we are getting bang for our
buck if part of that bang is that you want to help small
businesses, right now we are not doing that in the economic
development space. >> if could I chime in, too, I
just want to say unfortunately liquor licenses are involved
here in this committee. And that's the bane of my
existence, basically. So you mentioned assemblyman
stirpe, we are in a little more specialized space, but I did
want to pint point out that the new york mep centers, have a
tremendous amount of funding partners and different grant
programs and things that we tap into on behalf of our
manufacturers, partners like national grid, nyseg, rg & e,
workforce development institute, the county workforce boards.
there are a lot of specialized programs that we are able to
direct to our never manufacturers.
I also, if for nothing else wanted to put it on your radar
across the mep network but starting with tdo in central
new york, we are working on developing a pilot program in
coordination with empire state development to service
manufacturers that, you know, when where the consolidated
funding application, cfa, may not be the right fit.
maybe they don't qualify because of job creation or whatever, but
it's a great project, you know, it's going to help boost
productivity, grow their business but maybe not hit the
job numbers that the cfa requires.
so across the mep network we are helpful that-- hopeful that we
are going to be rolling out the program working with empire
state development. One of the things that on the
new york mep side, we are always looking, you know, for
innovative new ways to help our manufacturers out and that's one
ever them, to your point, you know, what programs.
we are looking into that because that's what we've heard from our
manufacturers we need access to capital.
we can't really-- we don't qualify for the cfa but we need
help. >> okay, go ahead.
thank you to all of you, I hear you loud and clear on the
regulations and as I was sitting here I think maybe we would
ensure that all of our commissioners or one of their
designee be at these hearings because I think it is very
important and I will invite them to listen to your testimony and
share it with them because you are right.
we hear it all the time there is a little bit of business owners
that want to do transfers and it's frustrating because of the
fear so thank you for that. Sonya, I know gina hadek is one
of your team members that, as I have had many roundtables, go to
gina but she is one person. I understand the points that you
have brought forward and will continue to look at the support
you provide. Sonic research lab is within
coming up with innovative ideas. I appreciate as well as with
manufacturing. My one question to all of you is
the folks that have testified today, do you know them all?
do you work with them? We talked about cross regional?
clearly there is a lot of overlap that we are seeing and
we want to make sure you are nodding your heads all yes so
that's great to hear bus if we are going to talk about the
state as a whole, we want to make sure that everyone is aware
of what everyone else and it's across regionalal with macny and
whore else. >> assemblywoman buttenschon,
truer words have never been spoken.
one of the things critical to the success of our organization
that we place at the very top of our priorities list driving
collaboration and partnership. In the life sciences, we have a
presence in one way or another in 62 counties.
and to be able to connect or members to the resources and
assets across the state is a critically important part.
we could not do what we do without the folks at the mep
network, with you the macny, without centerstate, without all
of those. I will just share I was recently
on long island and listening to some folks understandably
complain. We at long island are in the
forgotten part of new york. And I often laugh and quite
frankly probably get in thrubl for saying this, I over think
that the one thing that unites all new yorkers outside of the
island of manhattan is the conviction that they are in the
forgotten part of new york. And I think in part that's
driven by the complexity that we have in the state but to your
point, work that we need to do to better join the various
regional assets, the work that folks are doing across the
network is really the way to grow success.
so thank you. >> and I would agree.
I echo everything he said. We do a lot of work
collaboratively working with his group.
macny, centerstate and empire state development all sit on my
bods there. We board of directors there.
we work with the community boards and colleges, we are
across, you know, the entire new york mep landscape, we are
embedded within the fabric, the economic development fabric of
every region of the state. >> I was going say it's a lesson
for state government, honestly, what you see in terms of
collaboration among the different groups that obviously
I don't work with these fine gentlemen all that often, but
there are other groups like other chambers and other
organizations that we collaborate with small business
development centers, sba or whoever it may be, there is
constant communication going on between all of us.
and I don't think you see that from a state agencies level the
right hand is not talking to the left hand and there is overlap a
lot of times that can be of great assistance to a small
business owner and I think the state agencies could collaborate
a lot more than they do. >> you got home work.
>> I know you mentioned gina hadok out of the mohawk valley
community college sbdc and at that time was a very beneficial
relationship built with esd and mep division when jason clark
came on board, we talked about the backlog and all of the
things pending and recertification and gina
actually worked with lauren and jenny and a couple of their
other team members to help with streamlining that, looking at
the key areas where there are challenges from small businesses
so that communication was a partnership and the
redevelopment and revamping of that program.
and as I mentioned, we do 40% of the accepted applications for
that program and a key partner along with apex as well as the
eacs and some chambers are involved but we do the brule can
of the work. >> I know that and I guess I
just find the challenge that it is called gina, you know, she is
one person. That's what happens every time
in the roundtable and we have to invite her.
so I appreciate that. I'm just wondering, again, are
we doing it as we should because many of those small businesses
are like you you got me for an hour because have I to get out
of here and get to work. Thank you.
>> thank you all for being here. I'm just curious if, in all of
your analysis, are loss of population comes up as an issue,
and okay, I see four heads nod. Thank you.
I would think it is, too. As you know, we are now for the
fourth consecutive year in a row, the highest outmigration
state in the country. I ask you then, recognizing that
a healthy economy requires population growth, any economist
at any level will acknowledge that.
and unhealthy one gets worse with every loss of every
taxpayer and every producer, let's call them producers for
this case. In this case.
do you bring that up and say, hey, look, we are losing people.
we are driving them away? I know my colleagues on the left
don't want to acknowledge this, but lock at federal
representation as well 50 years ago we had about 40
congressional representatives in the state.
we have 26 right now so when people say we don't have a
problem, I say we have a huge problem we have a huge loss in
congressional representation for federal dollars and federal
programs nches and here we are again, losing mental rajing
people, hemorrhaging businesses. And I justed my question is
simply what do you think we can do to stop the loss so that we
can actually reverse it in all of the things I've heard all day
by all the panelists talking about are all individually doing
great things but there are holes in the hall of the-- holes in
the hull of the boat. And until we fix that and make
the boat float, we've got problems.
>> so let me jump in and say a couple things from my
perspective. Workforce is the number one
issue that our members are concerned about.
being able to find a qualified workforce to staff their needs
and frankly in our industry, workforce runs the gamut from
front line manufacturing, all the way up to post-ph.d
doctoral candidates, right? It's everywhere in between and
the ability to find those employees to fill those jobs is
a critical challenge. I bough say to you a couple of
things and I say this as somebody frankly who spent his
entire life in upstate new york. I grew up in cortland, small
manufacturing town, right? You know it.
we manufactured trucks and smith corona typewriters.
we used to look at rochester and say rochester, new york, is
never going to have a problem. They have eastman kodak.
we will always need film. They have xerox.
we will always need copies. They have bausch & lomb, we will
always need lenses and the dig-- digital revolution came along
and we didn't need those things the way we thought we would need
them. The approach that I think
successful is to turn-- and rochester has done a tremendous
jobs taking the intellectual assets and turning them into
small businesses that are growing and succeeding and I
believe that jobs that employees will follow where job
opportunities exist. The other thing that I would say
to you, and I think it was kevin schwab who mentioned earlier,
the nationwide levels of concentrated poverty in many of
our cities in new york. What that really means to me is
that we have an untapped resource of workers.
we need to figure out how to capture baxter, the former in
skaneateles has challenged his company to find employees from
auburn. In part, it might be a bit
related to the increase in the minimum wage and some fast food
professions. In part it's also related to
transportation challenges, child care challenges, all those wrap
around services. So my answer to you is is it a
problem? Absolutely.
we need to take a holistic look at what we are doing and find
solutionses to the problem and we can do it.
>> we hear the workforce challenge from many of the
manufacturers that we have in our region.
I really think that's where the new york mep system is
strategically designed to help. We help manufacturers develop
retention strategies, attraction efforts, we have, you know, a
lot of resources. We connect with a lot of
partners on the workforce side as well.
you the also on the technical side, you know, for some of
these hard to fill jobs, that's where new york mep steps in and
says okay is there automation? Are there things we can do to
boost your productivity? Maybe there is a different way
of looking at your processes where we are still short a
person but maybe we can fix that on the process or automation
side there so again that's where we have a little bit of a
different, I think, viewpoint on that.
we see it as an opportunity. That's where we thrive.
>> how are y'all doing? I'm glad to my colleague came up
with the census and having an ac receipts count of all
new yorkers, meaning anyone who lives in our state, needs to be
counted, and I do think the business industry needs to be a
part of that and advocate for it advertise for it because to his
point if we can get the proper count we would have greater
federal representation and a bigger piece of the pie and go
to the programs we are talking about, making sure they're
funded. Additionally, I think no one up
here left or right can agree we can be more streamlined as a
state and we want to make sure the programs are efficient and
work better. The other side of it is we want
to make sure nobody takes advantage of the system because
all it takes is one bad actor completely take down a system
and next thing you know, the post is saying the new york
assembly didn't take the proper steps to ensure this program is
in line, right so you are right, we have to find that balance one
thing we need to look at, we have had a track record over the
last couple of years to help small businesses and I want to
give a big shoutout to labor chair harry bronson and our
speaker because of the $7 billion we did to help the
unemployment insurance fund to get that off the backs of all
businesses but definitely small and mediumized businesses is a
huge win for the business industry and community and so I
don't want to hear people saying the new york state assembly
doesn't understand that. We are trying to find the
balance of making sure people have living wages while at the
same time proper regulations that ensure that our businesses
are acting as good faith partners.
with that said, to director smith, you have experience with
pennsylvania. What in pennsylvania do you
think works well that we should bring here to new york?
>> both the assemblymembers, thank you for the question, talk
about population and that's where most of our funding was
cut in 2020, due to the pandemic so our program already got
smaller since then. But to answer your question, on
pennsylvania, I actually was the associate state director for
programs and policy. A lot of what we did were
developing centers of excellence and really highlighting the
expertise of not only the staff but the needs of the different
communities. So it could be, for instance,
one was on e-commerce and we partnered with the department of
-- or economic development agency so eda, on the federal
side, funding that program. And so that was for anything on
shop phi or online platforms for businesses to get on the retail
side online. In general, the regulations or
the state side of policy, anything of that nature,
everyone is unique but I think far behind and having access to
capital or individual programs that are actually supporting the
small businesses, so, of course, ded are putting out programs but
the small businesses like you heard don't have the time or the
bandwidth or the understanding or even the awareness
acknowledgment of that and I think that's what is different
in a lot of states. They invest in that for the
technical assistance to be there to support those programs.
if you are going to put new money into programs, you need
the technical assistance to support that as well and that is
very different in other states business transition is a big
thing we are trying to develop a program around that it will be
piloted in assemblyman stirpe's district out of the onondaga
community college sbdc north central but we are doing that
out of county funds and private funds to do that.
it's not state supported and so that's the difference I see is
that there is no streamlineing and conversations between state
agencies to support that. >> quick followup you said you
are doing it in the chairman's district but we need impact
program. >> the mainstream program out of
the ssbci, state credit initiative or business incentive
was out of tress treasury, and through that program, if you are
going to put programs out like that, you need the technical
assistance partners or resources to be able to have small
businesses understand the awareness, the administrative
part and how to apply for that and if they're eligible.
so I feel like that's the difference in certain states is
the support from the state to streamline and have that
information but also have resources available.
>> got it. Thank you.
>> and quickly just on your point on unemployment insurance,
I was smiling at chair stirpe because he has heard me since
2021 about that issue ad nauseum.
I'm sure there are times he doesn't want to take my phone
call on that issue. So I commend your chamber, the
assembly particularly the speaker and so many members
within that chamber for getting that done.
>> including both these chairs. >> and all these chairs.
that was a tremendous, tremendous accomplishment and
one that small businesses have been calling for for a few years
now and I do comment you because you look the lead on that issue
and it would not have gotten done without your leadership
across the board. We recognize that and that's a
great example of something to help small business.
that was an unnecessary cost driver that we could take away
and there are things like that that we can look at.
>> thank you. >> thank you all for being here.
I just want to say that earlier on said a lot of the businesses
are not looking for grants and you hit the nail on the head
with that because I know a lot of these businesses in my area,
especially in long island, they're looking for
sustainability. They don't want a handout.
they want to just know that they can survive month to month just
by doing their jobs because they see these businesses as their
babies and they don't want it to go and they want them to thrive,
near not looking to make millions of dollars from the
business. They just want to survive.
and that's something we should be helping more on.
and throughout the panelist as everybody, we have not gotten to
that issue that same way people are leaving the state, this is
probably because also businesses, which are the
backbone of our state, are not thriving and not doing well
enough. I had a business, which was a
staple of our community for many years and from year to year, the
resources, is services, the wages, the insurances they keep
on going up and up and it's not something that they can could
keep up-- they could not keep up with because they can't charge
for a hamburger $45 and that's what it comes down to at the end
of the day. I know we should be doing more
to help with the sustainability of these businesses and not just
with grants and we'll do what we can.
I promise the that. >> okay.
good afternoon. Thank you for being here.
winthrop, I really want to thank you for shouting out long island
because sometimes we get a little lost in the shuffle.
so I appreciate that. I wanted to ask you about the
federal cuts life sciences has incurred because there is not a
sector that has not been devastated by the federal cuts.
I just wanted to know how it lies with the life sciences,
those cuts. >> well, thank you for the
compliment and then you went and poured salt in a real wound here
is what I would say and this is one thing that would I want this
committee to really kind of folk news on.
there has certainly been an awful lot in the press about the
devastating impact frankly to our universities at cuts in
federally funded research those are real, those are problematic.
by the way, those are economic development and business dollars
that are going to have impacts across the state.
in addition, one aspect of that that I think has gotten too
little attention is the recollection anythings that most
health product innovation is coming out of our universities,
through our networks of incubators, accelerators and
other places so not only are we looking at huge cuts to
universities. We are looking at a pinch in the
pipeline of new products coming tut at the tend of this process.
we are all about innovation and improving lives, losing that
pipeline of products is not only devastating to the state of new
york and the united states, it's devastating to patients around
the world. And we need to continue to
advocate, frankly, from my perspective, if you really want
to make america healthy again, we increase investment in
research; cree-- we increase research in healthcare
innovation to drive down costs of chronic diseases like stroke
and cancer and diabetes and these things that are sending
healthcare costs through the roof.
that's the way to both improve health and to lower costs and so
I think we in new york have an opportunity to be a leader in
that ways. There is not a location on the
face of this planet that has the wealth of educational resources,
the workforce, the brain power, and, frankly, the attraction to
capital than we have in new york and we need to leverage those
strengths to continue to grow the business.
one last thing that I will say about the bio genesis park in
long island, it's going to be adjacent in nassau county to
queens. The most diverse place on the
face of the planet. That's a strength.
that allows researchers to tap into populations and diversity
of populations that you could not find anywhere else.
we need to make smart investments in places like that
because that's where new york can be a leader.
>> thank you very much for that. I'm out of time.
ashley, sonya thank you for shining the light on actual
small businesses, the life blood of our communities throughout
the state that they're often left out of the esd programs
they just don't qualify. I have been inquiring on that
before and never got the answers we need to make a change so ?I
really would love to work on ways that we can establish more
programs deered for the small businesses that we have through
out our state and I know another thing is, we don't have time now
but I hope to find out more about your a.I. Recommendations
in regards, so perhaps I'll email you.
>> terrific. Thank you.
>> thank you all very much. Great conversation.
now we go to the remaining people who have been sitting
here patiently. Nobody snored.
it was good. >> hi there.
hello. >> you are going to make this
really quick. >> yes.
we know we are standing in between everyone and lunch.
>> okay. Since we started on this side
last time, we'll go and start on this side this time.
>> thank you very much. By the way, I texted gina to
tell her how many times she has been mentioned clarkson class of
1990. Thank you very much.
we are very excited about the opportunity today about how
clarkson and all of our partners are driving innovation, job
creation, sustainable economic growth across new york state.
that is consistent with our mission to last 125 years to
seek out the real needs of american people and we do that
through partnerships that strengthen both local and
statewide economies and do a lot of hands on education in applied
research. We are proud to say that esd
investments produce tangible results.
new technologies, new and retained companies, and new jobs
for new yorkers. And we would always welcome
further review by these committees on incentives for the
corporate partners we talked about (inaudible) you mentioned
people talking about the federal pressures that are on
universities right now. Our corporate partners are
coming to us with all of their challenges right now also so any
tax breaks or incentives we can give them to work with our
universities would be very welcome in this process, too I'm
going to highlight three of our programs.
it is the innovation hotspot for the north country, our
new york state center of excellence and healthy water
solutions with suny esf and our center for advanced materials
processing one of the cats in the state.
first north country innovation hotspot.
I'm not used to hearing that long island is forgotten in the
north country but we will put that out there.
operates in downtown potsdam through shipley's center for
innovation, they help with idea to market as a lob incubator
prototyping spaces, dmesh usuallyization support,
mentorship networking. Last year we helped with more
than 60 entrepreneurs and small business navigate the rural
economic development ecosystem. Start-up developing advance pfas
removal and destruction technologies.
they do that in collaboration ration with with our healthy
center and last year with commercialization support and
from the hotspot, demax plasma increased revenues by there
361,000. This year we launched
entrepreneurship meetups drawing over 150 north country residents
who share in ideas to strengthen the economy.
the hotspot reported over 12 million in non-job economic
impacts and working to expand mentorship and training aspects
across all seven counties of northern new york.
the next is the center of excellence and healthy water
solutions, co-led with suny esf, united expertise and
engineering, watershed science and environmental technology to
safeguard one of new york's greatest assets: clean, healthy
water. Something we should never take
advantage of. Since its launch in 2019 we have
received 4.6 million in state funding, listened 10 million in
additional federal and industry support.
we have funded 38 research seed projects, 25 commercialization
projects and 18 research and education initiatives and
engaged over 25 municipal and industry partners.
these have produced 1.3 million direct economic impact and as I
said, we have secured additional federal resource grants with
that projects range from the pfas to working with lake
association, skaneateles and canandaigua that attracts
nutrient runoff that lead to detecting harmful algae blooms
and impacts tourism. We have new innovation and
satellite technology that we are preparing for commercialization
with that. Very exciting.
also it was brought up so many times I added a paragraph in.
our center also inspires the next generation.
we offer real world stem experiences for high school
students engaging communities in water resources with the same
companies and industry partners we are using now in our research
areas my plea on that is that college students are some of the
best people to inspire-- college students with stem experience
are the best to inspire the next generation to get involved.
they relate to them, similar in age and life experiences big
brothers, sisters and added bonus for all of that.
and finally camp since 1987, connects companies from all
across new york state in metals, polymers, bio materials, nano
materials, sustainability manufacturing from
semiconductors to clean energy. Camp has played a critical role
in building new york's semiconductor industry we are
the world leader in chemical mechanical plannerrization.
cmp, a foundational process in semiconductor manufacturing.
these capabilities help them improve yield, reduce defects et
cetera. We have hosted for the last 28
years, international symposium on cmp and that has been part of
the reason it has been attracting business that
industry to this state. In the last six years, we have
created over 325 jobs statewide, secured 32.5 billion in new
funding and worked with a variety of companies in all of
those things. So in conclusion, you know, we
would really like to again thank you for all that you do and
respectfully ask for your continued support in
consideration of collaboration with the governor incentive for
full funding of these programs as well as any new areas of
emphasis that beat some of the state needs in pfas and
manufacturing technologies that we all want to keep our water
and healthy areas safe. >> thank you distinguished
members of the committee, jen smith in my role within cornell
university's center for regional economic advancement, I lead
grow new york, a nystar funding food and ag start-up accelerator
and competition. I'm honored to making new york
farms and producers and high tech agri-businesses can thrive.
thank you for your time. The headlines of grow new york
are impressive since 2019, grow new york start-ups have created
over 250 new jobs, raised over $100 million in follow on
funding create new markets for farmers and new food business
and address labor and climate constraints so my testimony will
address the demonstrated potential for food and
agricultural start-ups to diversify, strengthen and expand
new york's economy, incrementally by building a
strong infrastructure for growth and exponentially through
industry changing technologies. Start-ups kirkly those working
in agtech and food teak build new sources of growth,
positively impact farmers top and bottom lines anchoring
skilled diploma in the region and broadening opportunities in
rural areas of the state. Upstate new york has a long
tradition of growing, making, moving, storing selling food and
the grow new york program defined and enriches agrisystem
built on dairy farming and value added dairy production, small
and mid sized vy verse family farms, trees fruits, grape,
maple and controlled environment agriculture among others.
the illustration I like to use when I'm talking about grow
new york's ability to strengthen the region is craft cannesery,--
a contract manufacturer of marinades based in genesee
county. Our 2022 investment into craft
cannery let them expand their processing facility and add an
inline metal detector that scans sealed products which expanded
the volume and type of products and pliers they can work with
meaning they have doubled their number of employees, more than
doubled their number of sales, and means more regional farms
are selling more products to more small food businesses that
can contracts with them. In 2024 inequity based start-ups
raided 18.7 billion across 869 deals, signaling a return to
pre-pandemic venture capital trends.
start-ups in the grow new york region received 91.48 million.
the entirety of upstate new york receives less than 1% of the
venture capital invested in new york state.
to continue to nurture a nation leading food and agtech
ecosystem in an economic region defined in part by lack of
investment by vcs, it's essential to use state funded
competition resources as a starter is to help start-ups
scale and grow thus attracting outside investment.
to illustrate the potential of grow new york to help attract
venture funds into our state, I'll tell you about a scribe bio
science, this they were founded in 2017 in ithaca is a spinout
from cornell and the voice thompson institute based on the
discovery of soil molecules detectable by plants which react
by priming their inmate-- innate defense responses.
in short, it's a sustainable non-toxic way for crops to
resist disease and pathogens, the lead commercial product won
a $500,000 investment in 2021 providing legitimacy for them to
raise 2.5 million in a seed round.
that funding facilitated field trials and local hires which in
turn led to a strategic partnership with nutrient ag
solutions which is integrating them into their premixes for the
u.s. Market. Based on the strength of the
company and their data, ascribe has a multimillion dollar
oversubscribed series eight set to close this fall.
I share these two case studies as evidence that the investments
made in the earlier years of grow new york are starting to
pay off now. I ask that you continue to fund
grow new york for further rounds of competition.
new york has long been a bread basket for the northeast.
it has been a beacon for innovators with a program like
grow new york, we combine the strengths, agrifood capability
and productivity and start-up stickiness with the net result
of more opportunity for more kinds of people, especially in
rural parts of the state. Thank you.
>> thank you. I would like to begin by
thanking you, chairman stirpe, chair buttenschon and the
members of the assembly economic development and small business
communities for, of course, the opportunity to testify here
today. My name is julie suarez,
associate dean for cornell college agricultural and life
sciences, we are nested within the private ivy league
institution of cornell university but we are also
uniquely a contract college and deeply embedded within the state
university system of new york. So we have both the public and
private facing mission. And for over 150 years, we have
been very proud to serve as new york's land grant
institution today I want to focus my remarks on one over
arching economic development issue, the tremendous
opportunity for new york's farmers, rural communities and
consumers arising from the growth of dairy manufacturing I
also want to thank these committees, the legislature and
the governor for taking a chance in 2018 by funding our center of
excellence in food and agriculture at our agritech
campus 234 jefe. I'll share-- in geneva.
I'll share an upupdate in our c coe as well.
I wanted to say I believe strongly in taking
responsibility for my mistakes. I stapled your pages together
incorrectly this morning so I will abridge my remarks.
will you find more written data in the testimony and would I
like to say I did it to make sure you are paying attention
but the reality is it was a simple error so forgive me.
just this week I wanted to talk about data from the
international dairy foods association which ranked
new york state number one in the nation for new investments in
dairy manufacturing capacity. Let me reemphasize this again.
new york is first in the entire nation for private sector
investments in dairy manufacturing.
cornell has long noted in fact this committee as well as other
colleagues in the legislature, that our state has incredible
potential in world food manufacturing due to our
climate, including abundant water resources even though we
are currently in a drought. Our innovative farmers, science
driven competitive edge, proximity to over 100 million
consumers in the eastern sea board and the state's favorable
tax and investment climate for farmers.
it has been my observation that new york's economic development
agenda often focuses on the latest high tech trend, what
appears to be bright, shiny and easy to visualize taking for
granted the strength of our agrifood system so I really want
to commend the governor, ag an markets and the legislature for
these recent investments in this sector.
nationally over 11 billion is being invested in dairy
manufacturing. The gap between our first ranked
new york at 2.8 billion and second ranked texas at
1.5 billion and wisconsin at 1.1 billion is striking and
highlights new york's competitive advantage.
research at cornell shows that manufacturers base location
decisions first on access to an abundant milk supply.
again our farmers are attracting these investments.
second, on water access, and third on labor costs and
availability. Environmental regulations feed
cost land availability and taxes rank far lower.
with record breaking manufacturing investment,
farmers face a generational opportunity to grow jobs and
investment in a rural community while remaining economicallily
viable and environmentally sustainable.
preliminary estimates suggest we need to grow our annual milk
supply by 5 to 6 billion pounds a year.
we have two innovation constraints that may limit this
growth. First new york's available
farmland is finite. And second, our labor shortages
persist at both the farm and manufacturing levels.
new york's over arching challenge to meet rising dairy
demand and ensurings growth aligns with our clcpa goals that
we believe that cornell cals, agriculture be a significant
part of the solution to climate challenges.
our research addressed two priorities.
the first is per cal efficiency ensuring that dairy cows are
healthy, well fed and producing milk with higher concentrations
of the proteins and amino acids manufacturers needs.
the second is advancing on farm technology, labor assisted
devices and robotics including a.I. Enabled robotics.
support for research and development to continue to boost
per cow efficiency will assist new york state in meeting the
demands for mill frk all of these new processing plants.
in fact historic precedent based on research and development at
cornell suggests that farmers can adequately meet at least
3.5 billion in additional pounds of milk produced annually
without significantly adding to cow numbers should new york
decide to invest in science, recognizing my time is super
limited I'm going to switch to our center on excellence at our
geneva campus and I wanted to just highlight a few brief
bullet points if I may. Since its establishment in 2018,
our coe has worked with over 1100 and supported over 1500 new
and retained jobs primarily in the rural spaces but also in
new york city. We have help generate and
increased member revenue companies by 57 million and
helped companies acquire 87 million in non-governmental
funds. The coe has had a remarkable
impact in our spaces an spaits job growth.
we appreciate your leadership in funding it and helping us to
support and develop our new eastern new york center which we
expect to extend our services to the eastern part of the state as
well. So thank you and I'm happy to
address any questions. >> thank you everyone for the
opportunity to be here and testify today.
I'm mike kennerknecht, assistant director of state relations and
economic development coordinator at the university of rochester.
the university is the largest private employer and largest
healthcare provider in upstate new york in fact we directly and
indirectly support 66,700 jobs in the state of new york.
that's one out of every 126 jobs.
many of the affiliates are going to be hospitals, long-term care
facilities, but some of the affiliates that I'm going to
talk about today are very critical state and federal
assets. One of which I'm going to start
out with and go out of order if you are following along in the
testimony. I'm going to jump to next core
and illuminate because I haven't heard it mentioned t. Nextcore
is an affiliate of the university of rochester, the
only state and federally designated incubator in the
finger lakes region. Programs offered at nexcore
leverage regional assets to drive workforce development and
resulted in 1.2 billion in economic impact and over 8,000
jobs created or retained since 2018.
some of the state programs that nextcore offers is venture for
climate tech and scale for climate tech, embark,
manufacturing accelerator and luminate.
luminate, I want to touch on this now.
nextdoor administers the luminate program.
the largest in the world as far as a business accelerator for
start-ups in the opi spates, optics photonics and imaging.
luminate has invested 25 million in 85 start-ups and those
companies have spent $21.6 million on more than 140
projects with new york sign manufacturing and supply chain
companies. These efforts have resulted in
210 new direct hires and support or retained an estimated 700
jobs. Companies in the portfolio have
raised an additional 437 million, providing an
estimated 14-1 investment ratio the reason I wanted to lead with
this is because luminate, like other programs, is funded
through the innovation venture competition program.
it was a $75 million fund established in the budget a few
years ago proprovide funding for the programs for five years.
luminate and others are going to be funded through 2026 but after
that, there will not be funding so we are hoping that when we
see the executive budget proposal and the final budget
this spring, the competition program will continue to be
funded. I'm going to skip back because
can I not be here without talking about the centers for
advanced technology and centers of excellence.
new york state supports 30 centers statewide for centers
for advantaged technology. They have long been one of the
most successful, if not the most successful economic development
program for new york state. These are the state's numbers,
not our numbers. But they average anywhere from
20 to 1 to 40 to one return on investment every single year.
in the 2024 reports, from esd, the most recent ones available,
the cats and the c coes helped to regenerate 3156 jobs and
general rate over 900 million in economic impact with an roi
greater than 31-1 and that's for the 2022-2023 reporting year.
it's the most recent one available.
at the university of rochester, we are very fortunate to have
three cats and coes, our center for advanced technology is ceis
which focuses on the optics photonics and imaging space.
our center of excellence is in data science and artificial
intelligence and thanks to support from the legislature, a
couple years ago, we had one of the newest coes which is rna
research and therapeutics, a joint center of excellence with
the university of albany and the university of rochester.
and one thing I want to touch on real quick.
I know time is going to run out quick.
is a connection with empire a.I. When I was here last year, the
university of rochester was not part of empire a.I. But we are
now. And this touches on some of the
recent comments about collaboration.
the newest coe that I touched on which is a collaboration with
the university of rochester and university of albany is now
working on a project with the empire a.I. Consortium,
researchers at the university of rochester and university of
albany are using computer vision and a.I. To analyze the recorded
movements of patients with neuromuscular diseases, most
common form of adult onset muscular dystrophy.
researchers hope to use the empire a.I. System to develop
innovative treatments for als. This is a great example of
collaboration not just between public and private institutions
but also how the centers of scheps are collaborating with
each other-- excellence are collaborating with each other
and supporting greater statewide nishs like empire a.I.
so I just say in conclusion, the university of rochester is
grateful for the programs that receive state funding at the
university I know the state eats financial outlook is
challenging. It seems like it is almost every
year but we certainly want to encourage strong sustained
investment and university based innovation and economic
development programs. Thank you.
>> I guess I'll start off and new york state, in effect.
>> somehow I can never turn these things on or off so thank
you for your question, you know, I'll speak from my college, the
college of agriculture and life science as thought for the-- and
not for the overall university. We have had over 110 million in
it cancel grants and contracts since january, multiyear
research contracts, a lot of them were in the climate space
and let me point out that whether we are talking about
climate change we are also talking about the climate
adaptation and assisting our farmers do things like climate
smart agricultural briding so that our farmers have the tools
that they need in the form of field crops, vegetables,
specialty crops that are adapted to the next climate change
adaptation that we see. So the 100 millionings having an
immediate impact on our institution.
I would point out that this comes after a long-term systemic
issue that has been identified in the first trump
administration in 2019 where usda conducted a survey of what
new york, what our federal government was investing in
agricultural sciences based r & d.
back in 2019, and it hasn't gotten any better.
we found out that china, the european union, argentina and
brazil are outpacing our investment as a society in
public sector agricultural research and technology
innovation. This is a significant challenge
for our federal government and for our state to grapple with
that we will have long-term implications on our farmers.
so in brief, the lack of federal r & d is going have significant
consequences on our ability to fulfill the rand grant mission
to help have the competitive advantage and the impact has
been and continues to be incredibly difficult.
>> everybody else having the same sfek?
>> I think it's the uncertainty and just always managing your
way through that, what are the overhead rates going to be
moving forward. A critical source of equipment
that we usually acquire, at least at clarkson university
uses its dollars on overhead that allows us to work with a
lot of smaller companies, the knollton technologies ought of
watertown that don't have the infrastructure in their own
business to have the same equipment that is going to be
one of the unknowns, how we work on that I would love to think
about how we can get more incentive from corporations to
help with those investments rather than just by the project
because transelectron microstope is 1.5 millions.
when you are working with the semiconductor industry, that's
one project but you need multiple projects to pull that
together and that's what we have been using the federal I I
their, too all of us at universities are doing a better
job explaining how our research has impact.
we often wrote paragraphs that had a lot of technical language.
we got an e.p.a. Grant after it had been pulled because I made a
lot of pleas going nobody wants to drink pfas in their water.
let's figure out we are trying to help you and our human rights
find a cheaper way of creating a sensor technology that can do it
for $200 instead of 5,000 per test run and we can do it
cheaper, faster better and we need to prove this out.
that seemed to be enough that we got that money back.
so having to explain it in ways how it impacts communities, I
think is really important and that's not always how many of us
had written grants for the typical reviewer of a program.
have you experienced-- the university of rochester
typically receives in excess of $400 million in federal research
funding annually. That supports thousands of jobs
across the region. So certainly the changes that we
have seen whether it's respect to funding for research to
overhead rates, all of that certainly has a negative impact
on jobs, on hiring decisions, but also that goes to what win
said on the previous panel, it's going to impact I.p. And
innovation because in the life sciences space, without the
funding for some of these projects, it's going to impact
the opportunity for companies, start-ups and others.
>> again, thank you to all of you.
we hear you loud and clear and I can el you, I work with julie
quite a bit and she has brought this information along to us.
I host a farm tour annually and she is always there.
so she is the boots on the ground for our agricultural
community so I thank you for that I just want to clarify,
with the folks that have testified and I've asked
everyone, do you work with them at all any that testified today?
>> well jen and I worked very closely together with the
cornell center for regional economic...
>> no I mean the other panels. >> I'm sorry, I misunderstood
your question. >> generally?
>> I'm just looking again to see if these partnerships are being
made and clearly we are going to have to start making sure that
we all introduce each other I know we work with others across
the state because our ecosystem is smaller and that's how we get
bigger and better resource access by partnering with
centerstate, partner is with the utica chamber even on a number
of things. We have a lot of the same
overlap and corporations and alumni businesses and air force
research lab contracts that were heavily involved so we are
spending a lot of time across the state of new york.
we are used to in the north country making a drive to go to
places so and hanging out with our friends at suny esf in a lot
of the projects, so we are very much much with all of them.
did I new york state business council manufacturing tour on
all of the north country stops this past week as well.
>> and the only other question is are farmers and our folks in
agriculture are aware, right, have you made sure they
understand what is happening as you have been such a strong
crutch and sanes to them. Are you giving them any sort of
advice of what to do if you are not there?
I mean I know one of the farms you were doing a study in the
corn field that we were there and you didn't even, because it
has to be random, you didn't even know we chose that farm so
I thought it was fun. We coordinate quite a bit
internally. If I may go back to address your
first question which I didn't understand at first so forgive
me we do actually collaborate quite a bit with our community
college partnerships and in fact while I do not do this directly
myself, our cornell workforce program that the state
legislature also funds has been working hand in hand with mohawk
valley community college on the suny apprenticeship program.
so I'm really pleased to say we have a pre-apprenticeship for
dairy inarmers already approved through mohawk valley community
college and we have multiple feed processing apprenticeship
programs ongoing one with cayuga community college and milking
ingredients, one with upstate niagara on the verge of getting
approved and partnership with the local community college
there. And our faculty members do the
food safety training and in fact, our goal is to create
connectivity. So while my work is centered in
start-up works which is an incubator hotspot in ithaca, we
are regularly engaging with our colleagues in central new york,
the finger lakes and the southern tier explicitly by the
mandate of our contract but increasingly in the north
country and the mohawk valley, too, to make sure that there is
a good fit between start-ups and the resources that are out there
in new york state and more than that, to kind of convene people
around those resources so there is fluency and understanding to
the part of the resources themselves what is available for
start-ups working in the food and ag space.
and that includes the farms and the food businesses that are
already here scwhr thank you. >> can I just add one more piece
about the center for excellence in healthy water solutions.
water is a great asset for new york and a number of
municipalities that are very concerned about the micron
buildout, what are the processes that's part of the pfas.
and the same with chobani. Three farms have come to us
talking about, you are asking for an increase.
it's going to increase the dairy waste and you've got to manage
that in a way that doesn't go into the river as and the water.
have you to create the right digester systems for all of your
dairy cattle emissions. >> thank you, chair.
>> to your point, these conflicts are all over
new york state and as we speak right now, they have been there
for 15 or 20 years and you are absolutely right, I mean if
anybody hit the nail on the head today, that was it because the
average person does not understand what that increase
means to their community, especially if they live next to
that farm or they border it. And to your statements about
pfas, I want to tell you, when I was saving this morning, I asked
myself, what is my pfas load right now?
so anything we can do-- and I can speak to you from my degree
is in agricultural science, my undergraduate, and I have most
of my military career was in scientific fields.
so anything that we can do to help you, I am personally all
about because the average person in our state does not understand
what we are faced with, and how detrimental these things can be
to not only people today but being able to reproduce our
children, our grandchildren, et cetera.
so I want to ask a question to all of you.
I understand and my perspective, I have led several federal
research and development programs and done a lot of work
with universities so I have been on the other side of it, too.
have you looked to see, and this is not a trick question.
I don't know the answer, is what cornell is experiencing is
purdue experiencing the same thing, is penn state
experiencing the same thing, et cetera, throughout the country?
do we know if there are sim rates of reduction or this
(inaudible). >> that's a good question I know
that there has been coordination and collaboration amongst the
association of public land grant universities.
there have been dislocations in funding for other public land
grant universities as well. Whether or not it's the same
amount, I'm not sure. >> I'm just curious.
that would be a valuable thing to know to be able to put into
perspective so that we can make will articles ument to help you
I will say our agricultural colleges rank number one in the
nation. We regularly in the top four,
our r & d spend is 290 million per year annually just in my
college, not cornells which is even higher than that.
so our impact is probably greater than other land grants
just by virtue of frankly how excellent our institution is and
that is what we really sook to-- seek to preserve for new york
family farmers. >> no doubt.
I can personally say the only thing that I wish we could do
immediately today for cornell is give you more funding because I
have found-- >> we are always open to that,
john this is very real. A lot of the things you have,
you don't have the bandwidth to follow up with respect to how
many people might take or make use of that.
as somebody who has done a lot with cornell, that would
immensely help you help us. >> I thank you for your
partnership and I will say that if we fail to invest in science
and agrifeed systems, our kids are going to have a much harder
tile than we are going to have with the food supply.
>> you don't center to convince me.
absolutely. Thank you.
>> >> so just real quick.
the numbers jumped a little bit. For rochester, is it 10 million
or $100 million that is in jeopardy in research?
>> is it 10 million or 100 million?
>> the number-- clarification on the number that is in jeopardy
on research? >> I don't have a number for the
number of federal grants that are in jeopardy at the
university of rochester. I know it's in the millions but
I don't know the overall I know there are multiple news stories.
it has been clear certain blue states definitely, federal
grants have been utilized targeting even in admissions,
schools have to give an admission plan to get federal
dollars to be approved. The economic multiplier in your
the direction we are going it could be an economic deterrent
in the billions for new york state or the country in
general and specifically on agricultural, I know for
example, one grant cancel add round the screw worm that can
possibly cause over a billion dollars in damage for our cattle
industry, which a lot of people don't know in new york we have a
robust cattle industry, mostly dairy, but we have a robust
cattle industry that might now be in danger because of the cuts
in addition, our and I was surprises that congress members
defended these cuts because it's going to impact not
new york city per se but we are looking at the southern tier,
north country and western new york, where a lot of those
good paying scientific jobs and research jobs are now in
jeopardy and I really am concerned about not just the
current professors who have endowed chairs from it but that
research assistant that doesn't get the chance to work on an
awesome scientific project that can create a bright economic
future for them so my question to you guys is how should we
pivot and refocus and make it known that research and
scientific research is key to our economic future?
how do we pivot that conversation how do we make
everyone understand how important it is continue to
raise your voice and speak up your message resonates strongly
with my heart because I believe strongly in the long-term value
of research. Not just for our food systems
which is what I know and our environmental systems clarkson's
water resources so raising your voice I think is important.
bee have a wonderful graduate student activity that we have
science club, the barbara mcclintock club and our
graduate students are taking action to start a letter writing
campaign to start talking about the work, kind of as clarkson
said, in a way that is non-scientific and helps the
public understand the impact of long-term investments in
research and science I'm happy to share some of the stories
with you. They're really heart warming to
see this ground swell of support I hope is starting to come when
we as a society realize we need to support scientific innovation
for our future. >> especially in agriculture,
like people don't see a point of other countries ahead of us if
our food supply complain gets interrupted or devastated by
something we could have stopped we have no one to blame but
ourselves I will add the timing is kind of funny.
because when I was sitting up there during the hearing,
university of rochester every few years, we hire an outside
firm to do an economic impact report for the university.
it's important to communicate to the community, to the state, to
the federal government to our elected officials, the impact
that the university is having. And I got the final draft while
I was sitting up there. That's something that will be
coming out soon. I know we at the university try
to, you know, communicate the impact that the research is
having, the jubes that it is supporting, the innovation that
it is helping to foster and, you know, continuing to do that I
know that my colleagues up here from clarkson, cornell and from
other institutions across the state continue to do that and it
is one of the most important things is to communicate that
impact and it's something I'm going to continue to do.
plenty of numbers in here and plenty more that are coming.
>> thank you. >> I add a simple k-12 outreach
I think is a simpler way of getting more of what we do in
our labs in front of the children, they go home, they
talk about it at their dinner table like wow I learned you who
to program my phone to look at harmful algae blooms with the
app and decide whether it's got characteristics that are bads or
good and so citizen science is something that part of the
outreach. That's always not the easiest
thing and we think about impacts of federal funding changes that
are going to be harder to fit that in but I think very much a
priority how we communicate with the youth in our communities to
get them excited about the kinds of careers new york has been
investing heavily in a lot of stem technology companies and we
have heard that they don't have enough, you know, student
workers to fill those I had 250 companies come to clarkson.
I graduate 750 a year at the last career fair and you know, I
need 180 engineers and you are like, okay, you are not going to
get them all here. I would love to have that
problem at a bigger level getting more kids excited about
the field. >> and I would just like to
note, too, the first casualty of the reduction in funding coming
from federal grants is really kind of the scarcity of
resources with a net result of a lack of collaboration.
and so, you know, supporting programs that build bridges
between institutions, so that we are able to work together so
that researchers are able to collaborate so that asker
organizations that help researchers translate their
findings into products and services that benefit our
society that's see so support is those programs and making sure
that mandate is built into the kind of programs that we are all
here talking about today. One thing I was going to add
real quick, research funding, I think it is important to note
that when faculty leave a university the federal funding
that they have been awarded, leaves with them, too so if we
are unfortunate to lose a researcher to massachusetts,
california, texas, some other state, they can bring with them
those jobs you were just talking about because often times grad
students assistants will follow with them, but hundreds of
thousands, millions of dollars in federal funding go goes to
that other institution. It can leave the state.
new york has been very successful with the new york
first program. It's focused on medical schools
like the university of rochester we have been the recipient of
three dint awards. That program has helped us to
attract talent from other states, from texas and others,
to new york and with them has come the star researcher but
support staff and millions of dollars so it's important to
also focus on the retention aspect because we don't want to
lose talented researchers and faculty to other states that
might be looking at making substantial investments in the
life sciences and biotech space to try to make up for what is
being created by changes in the administration down in
washington. >> I just want to say when you
were talking about having job fairs and you only have so many
graduates, one of the top reasons that micron stated that
they selected was site was because every year within an
hour and a half of the site, 7200 engineers graduate.
so that was a big deal for them. Thank you very much and sorry it
took so long to get to you, but I think it was worth it.