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Start-Up NY Misses The Mark

There are many reasons to be against Start-Up NY, Gov. Andrew Cuomo’s much ballyhooed and, at least thus far, not very successful economic development program that eliminates all taxes on businesses on or near the state’s college campuses.

In mid-April, reports of modest initial success and significant marketing costs prompted the state Conservative Party and the state chapter of the National Federation of Independent Businesses on the right and the left-leaning Working Families Party and Fiscal Policy Institute to ask for the program to be suspended. Reports indicated the first full year of Start-Up NY created just 76 jobs even though the state spent more than $53 million on marketing and promotion of the program.

While nothing has been finalized yet, we note the program has at least generated some much-needed interest in the Jamestown area. John Sayegh, Jamestown Community College vice president of continuing education and point person for JCC’s Start-Up NY program, told The Post-Journal in December that 10 businesses had placed interest in the program in September 2014, a number that increased to 20 by December. Two of those businesses continued the application process while two existing businesses within the county were contemplating expansion. The increased interest among the two local manufacturing entities would create more employment opportunities, Sayegh said.

The Post-Journal’s feelings on Start-Up NY haven’t changed over the past two years. We favor lowering spending and taxes throughout the state and creating a business-friendly environment everywhere in New York state, not just on designated tax-free zones. While we are disappointed in the program’s poor performance in the first year, the program hasn’t had much time to take hold. It took colleges time to develop their plans and have them approved by the state and even more time for the word to get out to developers what was available. Pulling the plug after only a few months of actual time open would be a waste of local college officials’ time and money. That doesn’t mean Start-Up NY should have a long leash. If the picture doesn’t improve in the second full year, it may well be time to pull the plug.

While we have long doubted that Start-Up NY could live up to its advanced billing, the interest shown in JCC as a Start-Up NY participant shows the program’s potential value to an area begging for economic development. We have more chance of success with it than without it.

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