Legislators oppose Governor’s plan to throw more funds into failing Start-Up NY initiative

Members of the Erie County Legislature approved a resolution at the Thursday, April 16, 2015 session opposing Gov. Andrew Cuomo’s plan to transfer additional funding into the disappointing Start-Up NY program. Based on the program’s extremely poor results, a majority of Legislators (9-2) oppose the proposed plan. To read the resolution, please CLICK HERE

 

In the first year, the Start-Up NY program created only 76 jobs and generated $1.7 million in investment. At that rate, the program will be a complete failure, Majority Leader Joseph Lorigo stated. If the current rate does not improve, the program will generate only 380 jobs and $8.5 million worth of investment over five years, as opposed to the promised creation of 2,300 jobs and $103 million worth of investment.

 

“Start-Up NY has fallen extremely short of the goals set by the Governor when he launched the program. It has created far less jobs and generated less investment than promised. It has been a huge disappointment, although not completely expected. Critics opposed the program from the beginning and I think New York State needs to recognize that Start-Up NY is not having the success that was hoped for and not waste any more money on it,” said Legislator Edward A. Rath, III, Chairman of the Legislature’s Economic Development Committee.

 

“The taxpayers of New York State are strapped with some of the highest taxes in the country and instead of pushing more funding into a failing program, we should return funds to taxpayers or invest them wisely,” said Legislator Kevin Hardwick.

 

“Based on the results of the program, it is unjustifiable for Gov. Cuomo to continue spending taxpayer money on such an ineffective program. The Erie County Legislature strongly requests that the millions of dollars diverted from the New York Power Authority be spent for the direct benefit of Western New Yorkers or given back to the residents in the State of New York in the form of lower taxes,” said Legislator Ted Morton.

 

“I read a report that stated the Governor has spent an astounding $53 million over the past 18 months on a national TV campaign to market Start-Up NY. The program was meant to give accepted applicants a break from the heavy tax burden that residents and established businesses face. There are no doubts that New York needs to improve its business climate and jumpstart the economy, but this program has shown it won’t do that,” said Majority Leader Lorigo.

 

A copy of the resolution will be sent to NYS leaders, strongly urging them to not invest New York Power Authority funds into Start-Up NY.

 

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