Assemblywoman Addie A.E. Jenne (D-Theresa) is questioning the state's proposal to rename its Start Up New York program after spending over $50 million on advertising for the brand.
The executive budget unveiled last month calls for making several changes - including its name - to the economic development program that links business with academia. The program came under heavy scrutiny last summer after a report issued by the state revealed it had spent over $50 million on advertising the program had led to the creation of just over 400 new jobs.
Empire State Development Chief Executive Officer Howard Zemsky has said the advertising campaign was necessary to change the perception that New York State is not a good place to do business.
Assemblywoman Jenne, questioning Mr. Zemsky during his testimony before a joint state legislature committee reviewing the proposed 2017-18 executive budget, suggested the name change seemed counterproductive. No new jobs have been created in St. Lawrence and Jefferson counties under the Start Up NY program.
"I'm bewildered why we would spent $53 million on brand identification and then go ahead and change the name a couple of years later. Why change the name after we spent so much time and money on it? I think we may need to rethink that," she said.
Assemblywoman Jenne noted Mr. Zemsky had testified earlier Wednesday that plans to refine and refocus the so-called Excelsior Business Program came after discussions with businesses in the program.
She asked the chief executive officer of Empire State Development if his agency had also taken into consideration concerns raised by state lawmakers in recent months about the state's economic development programs.
The assemblywoman had previously said she didn't feel the SUNY schools in the North Country had the resources they needed to make a committed effort to utilize Start Up NY on their campuses.
She noted last summer she needed to see the governor look at including funding in the SUNY budget for dedicated program personnel and academic program investments for Start Up NY if she was going to be able to continue to support the program.
"SUNY schools are among the cornerstones of economic development in our area. SUNY Potsdam has a proposal for an arts-related venture and SUNY Canton for a business accelerator. We need to be making investments in our SUNY system so they can work with the start ups," she stressed.
Mr. Zemsky said leaders of academia in the state, including the University of Buffalo, would be brought to the table.
"We would like funding for areas of the state other than just Western New York," Assemblywoman Jenne retorted.
Joining a chorus of her fellow legislators at the hearing, the North Country assemblywoman also voiced concern about the lack of transparency in the state's economic development program.
"We have asked for more transparency, and the accommodation we have seen in the proposed changes is more secrecy, less transparency," she charged.
Assemblywoman Jenne also questioned Mr. Zemsky about the actual number of jobs that have been created to date, not including jobs that were retained, as a result of the Regional Economic Development Council Program, which the governor is proposing for a seventh round of funding.
Mr. Zemsky's testimony touted that 210,000 jobs had been retained or created in the six rounds of the governor's signature regional competition program. "About 20 percent (are new jobs)," he said.
The executive budget calls for $750 million to be included in 2017 for the latest round of the regional economic development council competition.
Mr. Zemsky acknowledged the majority of the funding comes from other agencies' budgets, with ESD contributing $150 million.
Assemblywoman Jenne is a member of the New York State Assembly's Committee on Economic Development, Job Creation, Commerce and Industry.
IN THE PHOTO:
Assemblywoman Addie A.E. Jenne questions Empire State Development Chief Executive Officer Howard Zemsky on Wednesday during a joint legislative hearing on the 2017-18 executive budget for economic development programs in the state.
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