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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

Gap-closing Actions
  2008-09
(millions)
2009-10
(millions)
2010-11
(millions)
Economic Development
Reduce Economic Development Programs 6 6 6
Reduce Tourism Marketing Programs ($8M) and downsize International Trade Program ($2M) 0 10 10
Environment/Energy/Parks/Agriculture & Markets
Reduce DEC Operating Costs 0 7 7
Increase DEC Fees 0 9 9
Increase Park User Fees 0 7 7
Reduce Selected Park Operations and Services 0 5 5
Reduce Special Revenue Funds and Increase General Fund  Support for Parks and DEC 0 (10) (10)
Miscellaneous
Other spending reductions 6 12 10
Legislative Initiatives 0 (15) 0
Total 12 31 44

Economic Development

Environment/Energy/Parks/Agriculture & Markets

Miscellaneous Items