Syracuse, N.Y. — A new round of state funding for a key economic development initiative of Gov. Andrew Cuomo’s could become a casualty of the coronavirus pandemic.
State tax revenues fell $3.2 billion in the first eight months of 2020, compared with the same period in 2019. New York officials blame the drop on the economic impact of the pandemic.
In the absence of federal funding to offset the loss, the state will have to reduce spending to balance the budget, and that could include the Regional Economic Development Council initiative, said Kristin Devoe, a spokesperson for Empire State Development, the state’s economic development arm.
“The REDC program, like every other state-funded program, is under review as a result and we will provide further information as soon as we are able,” she said.
Cuomo launched the program 10 years ago to change the way the state doles out economic and community development aid to local communities.
For decades, decisions on economic development aid were made behind closed doors by “three men in a room” — whoever was governor, Assembly speaker and Senate majority leader at the time.
Cuomo created 10 councils made up of local experts and stakeholders from business, academia, local government, and non-governmental organizations to develop long-term strategic plans for economic growth in their regions and compete for state funding.
In the first nine annual rounds of the program, the state awarded $6.9 billion in funding to the 10 regions. Central New York has received the most — $789.8 million for 801 projects.
In 2019, $761 million in economic and community development funding was awarded to the 10 regions, including $86.2 million supporting 93 projects in Central New York.
The Central New York funding has included a $5 million grant in 2019 for an expansion of the Tessy Plastics plant in Elbridge and a $3.65 million grant in 2014 for the renovation and reopening of the historic Hotel Syracuse into a full-service Marriott.
Rick Moriarty covers business news and consumer issues. Got a tip, comment or story idea? Contact him anytime: Email | Twitter | Facebook | 315-470-3148
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October 05, 2020 at 07:00PM
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NY economic development money for local projects is at risk in budget crisis - syracuse.com
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