Business Council Statement on New State Budget

ALBANY, NY (03/29/2013)(readMedia)-- "For the first time in three decades New Yorkers are seeing the passage of three consecutive on-time budgets. Governor Cuomo, the State Senate and the State Assembly have once again worked together to produce a budget that limits spending to less than 2 percent while closing a $1.3 billion gap between projected revenues and spending - which the Business Council strongly supports.

This budget includes a number of tax incentives and reforms that The Business Council advocated for, including the phase-in of a 25 percent reduction on the corporate franchise tax rate on manufacturers. It also includes unemployment insurance reforms which will provide much needed stability to the unemployment system and give businesses a clearer way to manage their unemployment insurance costs, while restoring the state's Unemployment Insurance Trust Fund to long-term solvency.

The budget also adds to the cost of doing business by extending assessments on electric, natural gas and steam energy (a total of $1.5 billion), and by increasing the minimum wage - a measure whose impact will be felt by many businesses, with total cost estimates as high as $2 billion per year. Though the budget includes a minimum wage tax credit for students that mitigates the adverse impact on employers, The Business Council would have preferred a straightforward training wage. And, while the final agreement on both of these measures is an improvement over the original proposals, they are not consistent with a strategy to promote economic growth and the creation of good-paying jobs.

We look forward to continuing our work with the Governor and Legislature to stabilize and improve New York's economy while creating new jobs."

Heather Briccetti, president and CEO of The Business Council of New York State, Inc.