Assemblyman Bob Oaks – Business Column

Assemblyman Bob Oaks – Business Column

December 2016

The sixth round of New York State Regional Economic Development Council (REDC) Awards in early December found the Finger Lakes Region to once again be a “top performer,” with total grants of $80.5 million for 97 projects.  The funding announced for Wayne County totaled $2.3 million, with well over half going to public water and sewer projects and to help complete the portion of the Erie Canal trail that goes through Wayne County.  These improvements, when finished will enhance the economic climate in the county, providing the resources that make it more attractive to business.

Among the other awards were:

Finger Lakes Community College’s Newark campus – $150,000 to upgrade a building for BOCES and Rochester General Hospital

Headwater Foods in Ontario – $280,000 to purchase space and upgrade equipment for meat processing

Wayne ARC in Newark – $400,000 to renovate existing space into a Street of Shops

I am pleased that our region will be benefitting from these grants.  Much work goes into the effort to apply for these funds and by those who review and recommend the applications.  The final decisions on all of the grant awards, however, are made in Albany and announced by the Executive.  I believe the process should be more transparent and provide more accountability to taxpayers concerning how their tax dollars are spent.

I am the sponsor of (A-10531) that would increase transparency, accountability and oversight of the state’s economic development programs and projects funded through the state budget.

Specifically, the bill would:

• provide stronger oversight of taxpayer-funded programs by creating a three-member board to review and approve funding originating from lump sum appropriations worth $1 million or more to avoid conflicts of interest;
• establish an Appointee Contribution Prohibition to strengthen the equity of economic development programs by prohibiting individuals who distribute discretionary state funds (like REDC grants) from making political donations to the appointing authority that they represent. By prohibiting appointees and their families from making political contributions, we could limit the instances where political donors are distributing state money, and reduce instances of fraud and abuse.
• withhold the salaries of the governor and appropriate agency commissioners and deputy commissioners when economic development reports fail to meet reporting deadlines; and
• require an independent third-party to conduct a comprehensive audit of all economic development programs, as well as the Personal Income Tax and Corporate Franchise Tax rates to determine the best alternatives to create a more fair tax structure.

We need to know state funding is being invested in the most efficient manner and is helping to create jobs and stimulate business growth. . State investments have always been important to New York’s economy, we have to know that taxpayers across the state are seeing tangible benefits.  Opportunities in New York must exist for every taxpayer, regardless of where they live. For fairness, there must be proper checks and balances with respect to the state’s discretionary spending practices, whether it is through the REDC grants or the annual state budget process.

If you would like more information about the projects in Wayne County which were funded or any of the other regional projects, go to the Finger Lakes Empire State Development website at https://esd.ny.gov/regions/finger-lakes.

If you would like to discuss these topics or any other concerns, I can be reached at 315-946-5166 or by emailing my office at oaksr@assembly.state.ny.us.