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Reed: Zones Are Not Needed To Reopen Economy

Reopening the state’s economy by each economic development council region might not be the best strategy following the novel coronavirus, COVID-19, outbreak.

On Monday, Rep. Tom Reed, R-Corning, said he is concerned about reopening the economy based on the state’s 10 Regional Economic Development Councils. He said by restarting the economy based on what is happening in each zone, state officials are not maximizing the strength of working with other economic regions.

“It will be much stronger if we can use an interregional approach,” Reed said.

Reed said interregional collaboration for example between Western New York, Finger Lakes and the Southern Tier would be a more secured approach to reopening the economy.

“The sum of the parts are so much stronger when put together,” he said. “All of us working together and maximizing the capacity we all bring to the table.”

Reed said another reason reopening the economy shouldn’t be based on economic development zones is because Chautauqua and Erie counties have been impacted very differently by the coronavirus outbreak and shouldn’t have to follow the same criteria. Both Chautauqua and Erie counties are in the Western New York Regional Economic Development Council.

“Chautauqua County and Erie County from a public health perspective are apples and oranges, and they should be treated that way,” he said. “We should challenge the governor on if this is the right way (to reopen the economy).”

Reed made his comments while participating in the Chautauqua County Chamber of Commerce and Manufacturers Association of the Southern Tier weekly business call Monday.

Reed said there is a broad group of people across the state and in local governments working to reopen the economy. He is working closely with state Sen. George Borrello, R-Sunset Bay, Assemblyman Andy Goodell, R-Jamestown, and PJ Wendel, county executive, on a plan to reopen the economy, which includes input from the Chautauqua County Industrial Development Agency and the Chautauqua County Visitors Bureau.

“Together we are putting together some templates to provide the business community to be well-positioned to reopen,” he said.

Reed said it’s going to be Gov. Andrew Cuomo’s decision to reopen a region. Cuomo has announced his New York Forward plan, which includes 12 criteria necessary to reopen, with a target date of May 15, which is when Cuomo’s latest state of the emergency ends.

Cuomo’s 12 criteria plan includes New York continuing to control the rate of infection and build out the strategic stockpile of personal protective equipment and other medical equipment. The plan also calls for the state working with federal partners to rapidly scale up testing. A new state-of-the-art contact tracing program was launched by state officials with the partnership of former Mayor Mike Bloomberg, Bloomberg Philanthropies and Johns Hopkins University.

Cuomo’s 12 point plan outlines the guidelines that will help regions create individual plans based on facts and data to reopen New York.

Reed also discussed the challenge some businesses are having with recalling some of the employees they had to furlough or layoff after the pandemic. He said because of the $600 extra people are getting from the stimulus, in addition to unemployment payments, some workers are telling employers that they will not be returning to work.

Reed said, technically under federal law, someone refusing to work shouldn’t receive unemployment, but the state has taken the position that those individuals will be awarded unemployment.

“Legally they shouldn’t be (receiving unemployment) because they have been given a job and they refuse it, but we’re not seeing that in operation from the state Department of Labor,” Reed said.

Reed said business owners that are having this problem with workers should document that they offered an employee their job and they have refused it. He said this will help the business owner when it comes to the forgiveness part of the payment protection program loan they received, of which 25% can be used on items like rent and utility cost.

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