FOCUS ON REALITY if you would, please.

 Dear Nieces and Nephews, 

Josh Sommers of Focus Media, the firm that was enriched to the tune of $180,000 (ONE HUNDRED AND EIGHTY THOUSAND DOLLARS!!!) from Orange County (your tax dollars) is defending the Start-Up NY program instituted by Governor Andrew Cuomo (Oh! there are so many tendrils gently linked to each other in this web, which we will save for another time.) This is interesting for a number of reasons. Let’s look at a few things. And remember, this is coming from the man who was the Chair of a committee that gave himself an award.  http://www.recordonline.com/article/20150516/OPINION/150519486/101134/OPINION

JOSH SAID: “State economic officials cautioned, however, that it will take time for Start-Up NY to reap economic development rewards. The program is growing. Just recently, Crain's New York reported that there are commitments for 3,100 new jobs from 110 companies now enrolled in the program.”

How much time do you need when you have invested $40 MILLION DOLLARS on the AD campaign and your ROI (return on investment) is the PROMISE of 3100 jobs? How much time since late 2013, when the program started, do you need to see some results?  Let’s hope those jobs do happen and that they pay more than $13K /year to offset the $40 million.

Josh/Focus is basically doing the same thing on the county level, taking money from the government, which is our money, to spend on PR and advertising for the County. Focus media is not part of the government, is not a government agency and is definitely not a consumer focused (sorry couldn’t be avoided) group. Let’s see your ROI, Josh, what have you done for us so far? Is your plea for more time really on your behalf and not for Start-Up NY?

JOSH ALSO SAID: “There can also be residual benefits of this marketing that may nationally reshape New York's brand – even if this particular program doesn't stay for good. Start-Up NY's advertising messaging promotes New York’s assets, including the talented workforce and outstanding university system. And the campaign directly addresses the state's product weakness (taxes) with this tax-free program.”

Yes, Josh, NY does have a “talented workforce and outstanding university system”, and HIGH taxes. More on that in just a bit.

START-UP NY is Governor Cuomo’s initiative to create tax free communities for new and expanding businesses on SUNY and other university campuses across the state.

Businesses will be able to locate in these zones and operate 100% tax-free for 10 years.

    No income tax.

    No business or corporate state or local taxes.

    No sales tax.

    No property tax.

    No franchise fees                         http://www.empire.state.ny.us/

   

The Start-Up NY program, despite the deceptively governmental-looking website and links to the NYS home page, is part of the Empire State Development Corporation, which is not subject to the same accountability and oversight as NYS Government. It is a corporation.

Corporation n. an organization formed with state governmental approval to act as an artificial person to carry on business (or other activities), which can sue or be sued, and (unless it is non-profit) can issue shares of stock to raise funds with which to start a business or increase its capital. One benefit is that a corporation's liability for damages or debts is limited to its assets, so the shareholders and officers are protected from personal claims, unless they commit fraud.  law.com

Real Transparent, eh?

     

New York is home to high taxes compared to many other states; that is true. But instead of these convoluted plans to attract businesses that PROMISE a certain number of JOBS, businesses that cannot be taken to task, if they do not meet that number. Instead of trying to attract businesses that will start-up here in NY but leave once the incentives are gone; instead of throwing money into marketing programs that highlight the program but do nothing to correct the situation, why doesn’t NY cut taxes across the board? Why doesn’t NY either cut back on services (Oh we can almost hear the hue and cry of NYC residents and their sense of entitlement right now) OR perhaps find out what some of those other states are doing. (Texas, Florida, Delaware etc) and just do that?

And besides, just how many times have we chased companies like IBM who leave or threaten to leave if they do not receive more incentives once the 10 year period is over? Just think how easy it is for them to pull up stakes. For example, Wakefern, in the Town of Wallkill (even though it wasn’t due to the tax free period ending) moved to Pennsylvania once they hit some difficulties with the NY unions. Yes. This is the same Wallkill that purports itself to be a business mecca for business and industrial development and job creation! Where were the incentives then? How many jobs lost?

Do we really want a Band-Aid (plaster, to some of you) on a surgical wound? “Don’t throw good money after bad” is one of those old sayings you may have heard.

Auntie’s prediction: Creating s permanently desirable business and manufacturing environment?  It will never happen, nope,  no reforms of any kind, not with the “Three men in a room” scenario in Albany.

What’s that, dear nieces and nephews? “3 men in a room is not forever?” you say. Maybe you are right.

  TWO DOWN, 
ONE TO GO.