A New State Government Approach to Economic Growth

1. Chenango Tompkins Schuyler Steuben Delaware Chemung Tioga Broome A New State Government Approach to Economic Growth Governor Andrew M. Cuomo

2. Regional Economic Development Council of the Southern Tier Draft Strategic Plan October 2011 Southern Tier Regional Economic Development Council 2011

3. Draft Strategic Plan Vision of the Southern Tier Regional Economic Development Council: Building on a strong foundation of existing businesses and higher education institutions the Southern Tier region uses a collaborative approach to leverage its globally competitive advantages to attract talent and investment for the development of industry clusters.  Our focus will be on increasing the size and prosperity of the region’s workforce through new business creation based on high-technology discoveries and other entrepreneurship activities, while ensuring healthy communities and protecting the natural beauty and resources of the region. Southern Tier Regional Economic Development Council 2011

4. Draft Strategic Plan • Economic Development Opportunities: • Regional history of innovation and an entrepreneurial attitude • Natural resources ranging from abundant and clean waterways, to wind, sun and natural gas • Communities with charm and character • Successes and commitment to energy efficiency and use of renewable energy • Agricultural land, capacity to respond to demand for biomass in support of renewable energy, opportunities to apply technology for improved crops and operations, ability to support other industries such as tourism and energy • Well-established and successful corporations with large national and international markets in key areas such as advanced manufacturing, energy and transportation Southern Tier Regional Economic Development Council 2011

5. Draft Strategic Plan • Economic Development Opportunities (continued): • Proximity to major markets and key transportation corridors (I-81, I-86, I-88, I-99) • Quality health care providers that collaborate on regional issues • Outstanding academic institutions: Cornell University, Binghamton University, SUNY Delhi, Norwich Campus of Morrisville State University, Ithaca College, Elmira College, Broome Community College, Corning Community College and Tompkins-Cortland Community College • Progressive research at universities and major businesses in key fields such as energy, informatics, engineering, and agriculture Southern Tier Regional Economic Development Council 2011

6. Draft Strategic Plan • Critical Issues to be Addressed: • Need to revitalize the region’s downtowns and neighborhoods, especially as a result of the devastation brought about by Hurricane Irene and Tropical Storm Lee • Lack of critical and basic infrastructure: commercial buildings, adequate housing stock in neighborhoods, pedestrian transportation support such as bike lanes and sidewalks, shovel ready sites, broadband, and ground transportation • Workforce development, especially in health care and preparing for the growth in industries such as energy, transportation and agriculture • Aging population, with growing demand for health care services • Growing population with chronic diseases • Length of time to bring R&D to productization • Attracting and retaining talent Southern Tier Regional Economic Development Council 2011

7. Draft Strategic Plan Regional Council Statement on Natural Gas: High-volume hydraulic fracturing for natural gas is an issue being studied very closely by the US EPA and currently under regulatory review by the NYS Department of Environmental Conservation. The outcomes of these proceedings will have profound impact on the Southern Tier economy and most of upstate New York. This Regional Economic Council will pay close attention to the developments at the state and federal governments. Until there is a regulatory structure in place, we would not want to prejudge the experts and our regional council is not requesting state resources at this time. Southern Tier Regional Economic Development Council 2011

8. Draft Strategic Plan • Strategies: • The Southern Tier … New York’s Leader in Energy Efficiency and • Renewable Energy Technology • Southern Tier Transportation Alliance … Building Next Generation • Transportation Technology and Manufacturing • Health Care 2020 … Integrating Health Care Providers, Higher Education • and Cutting-Edge Technology • Revitalizing the Rural Farm- and Forest-Based Economy of the Southern Tier • Strengthening The Southern Tier’s Economic Development Backbone Southern Tier Regional Economic Development Council 2011

9. Draft Strategic Plan • Strategy: The Southern Tier … New York’s Leader in Energy Efficiency • and Renewable Energy Technology • Action Item. Southern Tier Renewable Energy and Efficiency Program: Residential and Small Scale Commercial Retrofit • Action Item. Southern Tier Renewable Energy and Efficiency Program: Large Scale Institutional and Commercial Projects • Action Item. Energy Development Alliance for New York – EDANY • Action Item. Energy Workforce Development Initiative • Sample Performance Measurement: • State and federal funding leveraged • Private sector investment • Number of residential and small scale commercial retrofit projects • Number of large scale energy efficiency retrofit projects • Increased intellectual property development, licensing and commercialization • Percentage growth in exports • Growth in revenue of related businesses such as wood pellet, timber, and solar-related construction and manufacturing • New and retained jobs in product development related businesses • Active involvement of university-based technology centers and programs Southern Tier Regional Economic Development Council 2011

10. Draft Strategic Plan • Strategy: Southern Tier Transportation Alliance … Building Next Generation • Transportation Technology and Manufacturing • Action Item. Next Generation Transportation Development Initiative • Action Item. Southern Tier Transportation Industry Cluster • Sample Performance Measurement: • Private sector investment • Federal and state funds leveraged • Percentage increase of mass transportation and military helicopter market captured • Number of new jobs created and maintained • Absolute and percentage growth in net revenue for businesses in the industry cluster • Number of spin-off companies created • Number of new ventures created • Development of regional transit system model Southern Tier Regional Economic Development Council 2011

11. Draft Strategic Plan • Strategy: Health Care 2020 … Integrating Health Care Providers, • Higher Education and Cutting-Edge Technology • Action Item . Regional Health Information Exchange & Electronic Medical Record System • Action Item . Expand Rural Health Care • Action Item . Senior Living Communities • Action Item . Health Care Workforce Development • Sample Performance Measurement: • Number of new non-clinical rural care centers established • Number of new clients served • Number of new and continuing client visits • Number of patients utilizing telemedicine and mobile health care technology • Number of telemedical patient encounters • Cost effectiveness monitoring • Private and non-profit investment in new senior living facilities, and programs such as New Markets Tax Credits leveraged • Utilization of publically owned unused or underutilized property • Utilization of university-based technology Southern Tier Regional Economic Development Council 2011

12. Draft Strategic Plan • Strategy: Revitalizing the Rural Farm- and Forest-Based • Economy of the Southern Tier • Action Item. Rural Initiative Venture Fund • Sample Performance Measurement: • Number of start-up farm operations and other agri-businesses such as wholesale and distribution • Number of new processing facilities for value-added agricultural products • Number of new farm markets • Number of new jobs created and maintained • Absolute and percentage growth in net revenue for agriculture and forestry businesses • Private investment in application of new technology • Leverage funding such as the Farmers Market Initiative Southern Tier Regional Economic Development Council 2011

13. Draft Strategic Plan • Strategy: Strengthening the Southern Tier’s Economic Development Backbone • Action Item. Southern Tier Community Revitalization Project • Action Item. Regional Broadband Communications Project • Action Item. Shovel-ready Site Development Project • Sample Performance Measurement: • Private sector investment • Federal and state funds leveraged • Number of buildings renovated • Number of new commercial spaces • Neighborhoods revitalized • New housing units • Increase in number of households and businesses gaining cell phone and internet connection • Strengthened broadband for universities, municipalities and major commercial users • Number of sites that secure New York’s Shovel Ready Certification • Number of businesses locating in the shovel ready sites • Number of brownfields and un/underutilized properties reused • Leveraging federal grants, and investments by municipalities, economic development agencies, private sector • Job creation Southern Tier Regional Economic Development Council 2011

14. Draft Strategic Plan • Organizational Structure • Regional Council will meet quarterly, and more frequently as needed, and will be responsible for: • Soliciting and receiving public input • Monitoring and evaluating progress of the strategies, projects and initiatives • Reviewing and recommending projects submitted through the CFA process • Receiving input and recommendations from the work plan groups • Referring statewide or inter-regional issues to the Chairman’s Committee Southern Tier Regional Economic Development Council 2011

15. Draft Strategic Plan • Organizational Structure (continued) • The Southern Tier Region Economic Development Corporation will: • Take the lead in acquiring commitments to action • Oversee implementation of the strategies to advance the projects • Monitor progress against the plan and report to the Regional Council Southern Tier Regional Economic Development Council 2011

16. Draft Strategic Plan • On-going Public Participation • Governor Cuomo’s Regional Council Website (http://nyworks.ny.gov/content/southern-tier) • Public Forums • Council Meetings and Work Sessions • Work Plan Groups  • Existing Groups, Forums, Networks and Reports • Media Southern Tier Regional Economic Development Council 2011

17. Statewide Issues • High Cost of Doing Business in New York State • High business taxes due to state government inefficiency and growing budgets • High energy and other utility costs • High cost of worker compensation insurance • Need to offset the high healthcare costs to businesses by investing in state-wide programs that address the growing rate of chronic disease, especially diabetes, cardiovascular disease and cancer Southern Tier Regional Economic Development Council 2011

18. Statewide Issues • Infrastructure Issues • Shift away from NYS financial assistance to municipalities for needed infrastructure upgrades • Need for expansions, upgrades and repairs of rail, particularly short-line freight rail • Lack of intercity or commuter passenger rail connecting regions of the state to key markets • High cost of repairs and mandated upgrades to clean water and wastewater treatment facilities • Need for funding to complete interstate infrastructure projects (I86 and I-99), as well as state funding for local roads and bridges • Need to provide additional infrastructure such as dams and dikes, to protect communities from future devastation caused by flooding • Need for upgrades to airports to allow the aviation industry across the state to improve service and be competitive • Need for funding to improve pedestrian infrastructure such as sidewalks and bicycle lanes Southern Tier Regional Economic Development Council 2011

19. Statewide Issues • Economic Development Issues • Regulations and lack of investment are barriers to significant growth in the • state-wide dairy industry • Deferral of tax incentives from companies • Funding for on-going workforce development • Lack of compatibility among designated regional boundaries for many state programs and regulatory enforcement agencies, which prohibits a regional approach in many areas; i.e., tourism and I Love New York; NYS DOT; NYS DEC; ESDC, etc. Southern Tier Regional Economic Development Council 2011

20. Statewide Issues • Workforce Development Issues • Need for investment in K-12 education • Need for STEM programs to motivate children to pursue higher education in fields such as math, science and engineering • Reduced funding for workforce development, especially in growing industries such as energy, healthcare and transportation • Dwindling pool of talented workers due to outmigration and lack of ability to retain talent graduating from some of the best universities in the world • Lengthy process to obtain Dept. of Education approval for academic programs as colleges • and universities • Overlap and lack of coordination among agencies. Example: healthcare industry struggles with effectively and efficiently responding to policies and procedures imposed by Dept. of Health and Dept. of Education. • Inefficient process to obtain required licensing through the Dept. of Education; example is in healthcare with high demand jobs such a lab technicians Southern Tier Regional Economic Development Council 2011

21. Statewide Issues • Federal and State Policies, Procedures and Unfunded Mandates • Chesapeake and New York City Watersheds – impact on wastewater treatment facilities • Susquehanna River Basin; particularly EPA TMDL mandate • Labor/migrant worker laws and weekly payroll rules for farm workers • Inconsistency in federal and state policies such as NYSDOT, NYSDEC and Army Corps of Engineers, and in state interagency interactions • Multiple unfunded mandates to counties, local municipalities and schools districts that add cost, but not value, and make it difficult for municipalities to budget and operate efficiently • Impact of regulation of Article 28 providers in the health care industry, which significantly adds cost and time delays and does not add value • High cost of fire and police to municipalities due to arbitration requirements that shift cost to communities mandated by the Taylor Law. This limits the bargaining power of local governments. Southern Tier Regional Economic Development Council 2011

22. Statewide Issues • Inefficiency and Complexity of the State Regulatory Process • Uncertainty on state’s position on natural gas drilling in the Marcellus Shale formation • Dairy marketing agreements • Regulatory environment, involving agencies such as DOL, DOH and DEC, is a drain on private, not for profit and public sectors because it is costly to municipalities, reinforces a lack of accountability among state agencies, creates a barrier to NYS’s economic competiveness, and impacts the ability of economic development agencies to quickly respond to opportunities Southern Tier Regional Economic Development Council 2011

23. Public Feedback • Speakers • Conduct yourself in a civil manner • State your name and affiliation • Limit your comments to under 2 minutes Southern Tier Regional Economic Development Council 2011

24. Governor Andrew M. Cuomo