2009-10 Enacted Budget Gap-closing Plan – Economic Development, Environment and Parks

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Economic Development, Environment and Parks Initiatives

Economic Development

The Enacted Budget recognizes the need to maximize the State’s economic development investments to both achieve fiscal relief and to encourage job growth.

The Enacted Budget reins in long-documented abuses in the Empire Zone program to ensure that taxpayer funds are being used wisely to create jobs. These reforms balance the concerns of the business community with the need to ensure that tax incentives provided under the program are effectively targeted to maximize the state’s investment. The reforms decertify “shirt-changers”, as well as firms producing less than $1 in actual investment and wages for every $1 in State tax incentives. Furthermore, to accelerate future reforms, the Empire Zone program will sunset on June 30, 2010 – one year earlier than in current law.

The Enacted Budget also maintains nearly $300 million in economic development capital authorized in the 2008-09 Budget, including the $120 million Upstate Regional Blueprint Fund, $35 million downstate Revitalization Program, and $30 million for Arts and Cultural efforts. In the coming weeks, Request for Proposals (RFPs) will be released by Empire State Development to support projects that develop strategic industries and revitalize communities across the state.

Environment, Agriculture & Markets

The Enacted Budget protects the State’s most critical environmental assets and agricultural programs and continues Governor Paterson’s commitment to our long-term environmental health, while reducing support for tangential initiatives.

The Enacted Budget breaks a 9-year logjam in the Legislature to enact a “Bigger Better Bottle Bill.” The new statute improves upon the 1982 law by expanding the 5-cent deposit on carbonated beverages, like beer and soda, to include bottled water. Each year, nearly 2.5 billion bottles of water are sold in New York. The statute mandates that the State retain 80 percent of unclaimed bottle deposits. These deposits, previously held by beverage companies, will provide New York with an additional $115 million in annual revenue to help address the State’s fiscal crisis.

The Budget will also make critical investments in the Environmental Protection Fund (EPF) with appropriations of $222 million to ensure that programs protecting New York’s water quality, open space, farmland and municipal parks remain intact. For the first time, 40 percent of the parks and waterfront revitalization funding will be targeted to underserved communities, up from 25 percent from previous years.

Parks, Recreation and Historic Preservation

The Office of Parks, Recreation and Historic Preservation targets resources to continue to provide the public with access to the vast network of parks and historic sites. There are no changes to daily entrance fees. While funding reductions will result in reduced operating hours for some facilities, impact on patrons will be minimized by concentrating the changes to the shoulder seasons, off-peak hours or facilities where similar services are available nearby. No parks will be closed, though approximately 100 parks and historic sites across the state will see some reduction in services out of 213 parks and historic sites around the state. In addition, a number of changes coincide with park repair and rehabilitation projects.

Gap-closing Actions

Economic Development

• Economic Development Program Reductions. Funding for several economic development initiatives will be reduced, including Centers for Applied Research and Technology program, ($1.25 million), local tourism matching grants ($1 million), Technology Transfer ($1 million), Faculty Development programs ($1 million), Military Base Retention ($980,000) and Emerging Industry Alliance ($599,000). These actions build upon a like amount of savings achieved in 2008-09 through the Deficit Reduction Plan. After these actions, nearly $90 million will be available to support economic development initiatives, including the Empire State Economic Development Fund; Minority-and Women-Owned Business Development and Lending programs; the Urban and Community Development Program; critical university-based matching grants; and other high technology and research and development programs. (2009-10 Savings: $6 million; 2010-11 Savings: $6 million)
• Reduce Tourism and Marketing Funding. Funding for tourism and marketing programs, including “I Love New York”, local tourism matching grants, International Trade and Business Marketing will be reduced or eliminated. Even after these actions, $18 million will remain available to support these programs. (2009-10 Savings: $10 million; 2010-11 Savings: $10 million)

Environment/Energy/Parks/Agriculture & Markets

• Decrease Department of Environmental Conservation (DEC) Operating Costs.  Various cost savings including eliminating vehicle purchases, reducing administrative costs, eliminating public outreach, a continued  hiring freeze, reducing operations at certain campgrounds. (2009-10 Savings: $7 million; 2010-11 Savings: $7 million)
• Increase DEC Fees.  This Budget increases various DEC fees. These include increases to hunting and fishing fees (for deposit into the Conservation Fund main account), the creation of a new marine fishing license fee (for deposit into the Conservation Fund Marine Resources account) and an increase to the Operating Permit Program fees. (2009-10 Savings: $9 million; 2010-11 Savings: $9 million)
• Increase State Park Fees. This reflects previously authorized increases in fees for various activities related to:  camping, cabin rentals, golf, marina usage, Empire passports, passes and permits. These fees were last increased at various times between 2003 and 2006. These increases will better align fees with the escalating cost of providing recreational services and will obviate more severe service reductions. (2009-10 Savings: $7 million; 2010-11 Savings: $7 million)
• Reduce State Park and Historic Site Operations. The Budget will not cause the outright closure of any parks or historic sites.  However, steps will be taken to consolidate services, reduce hours of operation, shorten seasons of peak operations, institute a hiring freeze and reduce levels of patron and program services. (2009-10 Savings: $5 million; 2010-11 Savings: $5 million)
• Reduce Special Revenue Funds and Increase General Fund Support for Parks and DEC. This Budget replaces funds previously received from the New York Power Authority and the public utility assessment account for operation of Niagara Reservation State Park, Art Park, Coles Creek State Park, and Robert Moses State Park with equal amounts of General Fund dollars.   (2009-10 Cost: $10 million; 2010-11 Cost: $10 million)

Miscellaneous Items

• Other Spending Reductions. Miscellaneous additional actions to achieve savings. (2008-09 Savings: $6 million; 2009-10 Savings: $12 million; 2010-11 Savings: $10 million)
• Legislative Initiatives. Funding was restored or added for several Agriculture and Markets Local Assistance programs, including the Farm Viability Institute, Center for Dairy Excellence, New York Maple Producers, New York State Wine and Grape Foundation, New York State Apple Growers Association, and Local Fairs.  Legislative additions made at the Department of State include funding for the Public Utility Law Project, Civil Legal Services and Census activities. (2009-10 Cost: $15 million; 2010-11 Cost: 0)