Governor Hochul Announces Fiscal Year 2023 Investments to Expand Economic Opportunities
Governor Kathy Hochul today announced the economic development highlights of the fiscal year 2023 budget. The historic plan makes bold investments to expand economic opportunities for alI New Yorker. These funds will, among other things, boost internet connectivity for all, help invigorate and support small businesses, revitalize downtown areas across the state, make substantial commitments to job training and workforce development, and supporting minority and women-owned businesses.
“This once-in-a-generation budget will help us build a stronger, fairer economy for all New Yorkers as we emerge from the pandemic,” Governor Hochul mentioned. “We invest in the industries of the future, Professional skills the training New Yorkers need to succeed, the small businesses that are the backbone of our economy, and the digital infrastructure needed today, and I thank legislative leaders for their efforts to ensure a recovery that reflects all the diversity of New York’s economy. »
The state budget commits investments that will transform the state’s digital infrastructure. Over a billion dollars ConnectALL initiative – the biggest investment ever in 21st century infrastructure in New York City – will leverage public and private investment to connect New Yorkers in rural and urban areas of the state to broadband and establish the first municipal program broadband of this type in the country. The unprecedented state investing in this vital infrastructure will help provide affordable broadband to millions of New Yorkers as well as spur economic growth and local innovation well into the distant future.
In addition to pioneering investments in digital infrastructure, the state budget repeals a fee on laying high-speed fiber optic cable along state highways, reducing the cost of rolling out high-speed broadband to expand access in upstate communities. The budget passed authorizes the New York Power Authority (NYPA) to make available excess capacity on its fiber optic network, which runs along NYPA-owned and operated transmission lines, to provide affordable high-speed broadband in communities unserved and underserved state. Using NYPA’s fiber infrastructure is expected to reduce the cost of deploying broadband to communities that need it, increasing broadband access and reducing the cost of broadband service for New Yorkers in those regions.
The state budget also includes a $1 billion investment in small businesses across the state, including targeted programs to ensure all types of small businesses thrive across the state. Key elements of this plan include:
- Seed Funding for New Small Businesses – This initiative will provide flexible grants to support start-ups, micro and small businesses in a recovering New York State economy. The program will ensure that small businesses that opened shortly before or during the COVID-19 pandemic will have the funds to continue for operateand and grow. This program is based on the will of the State $800 million The Pandemic Small Business Recovery Grant program, which has provided more than $500 million to nearly 29,000 small businesses to date, 90% of which has gone to minority and women-owned businesses, and remains open for apps.
- A small business tax credit in the event of COVID-19 – This $250 million investment will provide small businesses with a 50% tax credit of up to $25,000 to cover unforeseen COVID-related costs that small businesses have had to incur. This credit covers costs such as the purchase of cleaning supplies, outdoor heaters, air purifiers, signage indicating vaccination/masking policies, and equipment to enable contactless payments.
- Tax relief for small businesses – The state will provide $100 million in tax relief to approximately 195,000 small businesses to help them keep their doors open.
- Expanding access to capital and job-creating investments – This funding will provide access to capital, low-rate financing, and venture investment opportunities in small businesses in New York City, with an emphasis on supporting socially and economically disadvantaged small business owners. Funds from the State’s Small Business Credit Initiative (SSBCI) will support start-up and established small businesses through a series of programs designed to foster innovation, give small businesses additional opportunities in contracting, and position small businesses for long-term viability.
Other components of the 2023 Enacted Budget will invest in industries that will drive New York’s growth:
- The FAST NY Grant Program develop shovel-ready sites to attract high-tech manufacturing, particularly semiconductor-related businesses, while increasing the state’s attractiveness to large employers.
- Standardize and centralize Venture competitions designed to connect startups to investors and help new ventures in the innovation sector access funding.
- NYC Music and Drama Production Tax Credit Expanded and Improved – further support this sector, in the wake of Omicron’s impact on these performances.
- Historic funding for the New York State Council on the Artsfollowing a record $100 million in fiscal year 2022 grants to support the return of the arts statewide.
The state budget will invest $350 million to support large-scale, historic, and coordinated investments in workforce development across state agencies and authorities.
- The Office of Workforce and Economic Development at Empire State Development will be will be leverage Empire State Development’s relationships with employers to help identify employer needs, develop tailored regional training strategies, and support programs to train New Yorkers with the skills needed to succeed in in-demand fields. The office will work with regional economic development councils, the Department of Labor, the State University of New York and the City University of New York and other partners to ensure coordination of training strategies and manpower.
- Flexible grants and capital which will be administered by the new Office of Workforce Development will support state-of-the-art training efforts in regions across New York State.
- Targeted investments among teachers, healthcare workers, college apprenticeships and internships, mental health professionals and caregivers.
The state budget demonstrates that New York is leading the way in equity, planning for its new cannabis industry and minority and women-owned businesses, including:
- A $200 million fund from cannabis industry fees and revenues and significant private capital investments attend socially and economic entrepreneurs with the development of their adult cannabis businesses.
- $11 million invest in faster certifications for minority and women-owned businesses (MWBEs), address the backlog of pending certifications, and promote equal access to soft loans for MWBEs .
The state budget also provides more than $1 billion in new funding for economic and community development in a number of valuable programs, including Round XII of the Regional Economic Development Council (REDC) awards. and a sixth round of the popular Downtown Revitalization Initiative, to include NY Forward as a way to improve support for small rural communities. Additional budgetary investments include: community grants for improve waterfronts; the New York Works Economic Development Fund to create new jobs or maintain existing jobs; the RESTORE NY program, which aims to restore degraded properties; and additional funding from the Olympic Regional Development Authority to continue to improve and upgrade facilities and ski resorts.