LOWERING THE COST OF DOING BUSINESS
The cost of doing business in New York state is too high. A simple statement, but it’s one of the main reasons why many companies are packing up and fleeing the state and those that remain are furiously treading water just to stay afloat. It is a crisis that must be solved to put our state back on firm financial footing and advance our economy.
The state senate has taken a step in the right direction by approving “Recharge NY,” a new, permanent program that will provide businesses with low-cost power, helping create and retain jobs.
The program replaces “Power for Jobs,” a program which I helped found in 1997 while serving as chairman of the senate energy committee. The original discount power program was a true success, currently providing low cost power to about 500 businesses. The main hurdle in recent years has been the need to renew the program on an annual basis. I have advocated in favor of a long term extension to provide companies with peace of mind and that is exactly what “Recharge NY” will provide.
The new program would double the amount of energy available to businesses and non-profit organizations. “Recharge NY” would also provide participants with a seven-year commitment for their allocations of low-cost power. The stability of the program is vital, allowing business owners to plan for the long-term.
Another extremely positive attribute of the program – there is no cost to the state.
“Recharge NY” would combine the current 455 megawatts of power used for “Power for Jobs” with another 455 megawatts now used to cut residential electric bill across upstate by two to four dollars per month. In return, the New York Power Authority would provide residential customers with a yearly discount totaling $100 million through 2013. The discount would be reduced to $70 million in 2014, $50 million in 2015 and $30 million in 2016 and beyond. This phase out would be offset by savings from the scheduled expiration of the electric utility surcharge passed by senate Democrats in 2009, as well as costs paid by NYPA through a combination of hydroelectric power and other resources.
The new low cost power program could help revitalize the manufacturing sector of New York’s economy that has lost 288,000 jobs over the past ten years. Electric rates for businesses in New York are twice as high as rates in other states. New York’s high energy costs are a factor when New York-based companies decide whether to stay open or expand, and when new companies decide where to invest.
“Recharge NY” has broad support from groups like the Business Council of New York State, the New York Farm Bureau, the National Federation of Independent Business, the Manufacturers Association of Central New York, and Environmental Advocates.
It is also important to note that the legislation was approved by a unanimous 62-0 vote showing overwhelming support on both sides of the aisle. Further, the bill is a program bill submitted by the governor. Following its senate passage, Governor Cuomo offered his congratulations and called on the assembly to “follow the senate’s lead and perform for the people of New York by passing this bill to create jobs for New Yorkers. The time for action is now.”
In fact, “Recharge NY” is the third program bill submitted by the governor to be passed by the senate; the others being property tax cap legislation and the military voting ballot extension bill. In addition, the senate has passed bills to establish a state spending cap, provide tax incentives to encourage private sector job creation, and require a supermajority to raise taxes. The assembly has not acted on any these bills.
My colleagues and I in the senate are focused on the issues important to every New Yorker – lower taxes, less state spending and job creation. ‘Recharge New York’ is another important piece of an overall plan to accomplish these goals and move our state forward.
Senator Seward’s office web site is www.senatorjimseward.com.
Follow Senator Seward at www.facebook.com/senatorjimseward.
