ALBANY - In his first State of the State address, Gov. David Paterson acknowledged that the economic conditions in the state are challenging, but outlined his plan for a stronger New York to confront the current fiscal crisis.
Acknowledging the budget crisis, in addition to necessary reductions across every area, Paterson's proposed 2009-10 budget, which was released last month, outlined several examples of more effective and efficient spending through innovative programs to improve the lives of New Yorkers.
''We still do not know the extent of the economic chaos that awaits us but we do know that these are the worst economic times since the Great Depression,'' Paterson said. ''The developments of the past year have been startling, but this is no time for fear. This is a time for action and a time for courage. Every New Yorker has experienced both difficulty and adversity, but courage and hope have forged our character. Our government must now do what New York families have been doing for years - make painful choices about what we can and cannot afford.''
Paterson already proposed a $121.1 billion budget for the upcoming fiscal year, up 1.1 percent, which includes layoffs, a cut in school aid and 88 new or increased fees.
''We cannot solve our problems overnight or without sacrifice - they run too deep for that,'' Paterson said. ''These problems may last for many more months or even years. But we can solve them.''
CHANGING EMPIRE ZONES
The Democratic governor proposed several initiatives Wednesday, but one isn't making one local business development officials happy. Paterson has called for an increase in the amount of money businesses in state Empire Zones are generating. Paterson has called for business to produce $20 of benefits for every dollar of state money invested, an increase from the current 15-to-1 ratio.
''We should also understand that our current Empire Zone program does not work and we need to reform it,'' Paterson said. ''With the savings generated by reforming Empire Zones, we will make strategic investments in the job-creating industries of tomorrow, such as biotechnology and manufacturing, and we will offer research and development tax credits to foster innovation.''
Bill Daly, county Industrial Development Agency director, said changing the ratio of money businesses are expected to generate will only discourage businesses from operating in the state.
''The only reason these business are operate in the state is for the Empire Zone benefits,'' he said. ''Now the state wants to go after them. The governor is trying to make things more difficult to operate in the state of New York, especially in Upstate New York.''
Daly said even if some businesses are doing well, producing $13 or $14 dollars for every state dollar invested, the proposed changes will hinder their progress.
''This is one of the worst decisions the state could make,'' he said. ''I've had discussions with local companies. If the governor goes ahead with this it will create a disaster. Businesses in the state will be irreparably damaged.''
The county has two Empire Zones - the Greater Jamestown Empire Zone and the Dunkirk/Sheridan Empire Zone.
REVITALIZING THE ECONOMY
Paterson also called on establishing an upstate research consortium to develop hybrid electric batteries and energy storage technologies.
He set a statewide goal of meeting 45 percent of electricity needs by 2015 through improved efficiency and clean renewable energy. That would include ''greening'' schools and hospitals, mechanisms from the Public Service Commission and other public authorities to provide financing for retrofitting homes and businesses for energy efficiency and renewables.
Paterson said hitting that goal would create an estimated 50,000 jobs.
He called for careful investments in infrastructure: roads, bridges, higher education institutions, statewide broadband installation, computerization of medical records and clean water and wastewater systems.
Paterson also called on President-elect Barack Obama and the U.S. Congress to act quickly, by the end of January, on a comprehensive stimulus package to ignite the national economy. The governor also wants a reform of financial regulations so savings and retirement funds of New Yorkers will not be at risk.
Paterson said most importantly of all, the state must lower the cost of doing business.
''Property taxes are too high. We should cap them. State mandates are too burdensome. We should relieve them. Local government is too costly. We should help it become more efficient,'' he said.
Paterson called on the entire state government to assist him in making the hard choices to balance the state's budget.
''We must create jobs, strengthen health care, improve our schools, rebuild our infrastructure, protect our environment and begin a clean energy revolution,'' he said. ''I want all of you here today and all New Yorkers to hear me now, we are going to succeed and we are not going to fail.''