State Comptroller Thomas DiNapoli is making the rounds in the Hudson Valley, mixing personal charm with a gloomy forecast.
Although the mid-Hudson counties are faring above other areas of the state, DiNapoli acknowledged “challenging times and shaky confidence in state government … and a need to work across party lines” is going to create some hard choices for those who spend taxpayer dollars.
He told the 250 business owners, bankers, financial advisors and economic development representatives who packed the room the economy is weak and will get worse before it gets better..
Prior to his appearance before a joint luncheon hosted by the Greater Southern Dutchess/Dutchess County Regional Chambers of Commerce at Christo”™s in Poughkeepsie on April 21, DiNapoli spent the morning at Orange County”™s chamber headquarters in Montgomery.
At Christo”™s, DiNapoli acknowledged several former colleagues from the Legislature, where the 53-year-old Democrat was picked by peers as comptroller, reportedly over the objections of then-Gov. Eliot Spitzer, when Alan Hevesi resigned. Now with both Hevesi and Spitzer gone, DiNapoli has been well received on both sides of the aisle.
The Hudson Valley has reason, he said, to feel a bit more upbeat than other regions of the state because of:
Ӣ the economic potential of Stewart International Airport;
Ӣ a more stable housing market;
Ӣ an increase in job growth for both Orange and Dutchess counties;
Ӣ populations that continue to grow, not shrink;
Ӣ and a New York City housing market that drives people north.
But the need to attract higher-paying jobs, help education meet its needs without bankrupting the community and bring fuel and housing costs down must be a priority for the state before it can start spending money on its “wish list,” he said.
Small business, said DiNapoli, dominates the landscape. While Dutchess has nine companies that employ more than 1,000 people, nearly 90 per cent of the Hudson Valley”™s businesses employ fewer than 50. Challenges small business face in keeping doors open and employees provided for are going to continue for some time to come, DiNapoli cautioned.
The “unexpected change” in leadership in Albany prior to the April 1 budget deadline did create some behind-closed-doors negotiating, but DiNapoli is hoping the public will not misconstrue that as a return to clandestine deal making in Albany. “We will strive to become transparent and work openly,” said DiNapoli. “But be ready … we need to keep the erasers ready when it comes to the new budget ”“ Wall Street has a significant impact on state revenues and its revenues have declined nearly 20 percent. We can be sure the bonus pool at the end of 2008 will be much lower than we counted on. Then factor in the loss of jobs. This means loss of personal revenue and it will only get worse next year.”
Facing a deficit of nearly $5 billion, the state will no doubt be dealing with the realities of the credit crunch and “we are going to have to look more carefully at spending ”“ whether it is your personal household budget or in business ”“ no area of the state will be immune.”
The Tappan Zee Bridge is one project that will remain on hold. “It”™s a concern for all in New York, but we don”™t have money for either major repair or replacement,” said DiNapoli.
Through the work of two groups ”“ the Commission of Government Efficiency and Consolidation and the Property Tax Commission, which has a report due May 22, — DiNapoli says Albany will have a clearer picture of its financial forecast and what can be done to close the budget gap.
“Worst case scenario is we will be in the same shape as we were during the 1990-1991 (recession) and the September 11 attacks ”“ which sent the Legislature back into special session to make cuts.”
His office has not finished its report card on that budget, but there will be one shortly. DiNapoli looks forward to working with new Gov. David Paterson, who was a peer in the Legislature.
John D”™Ambrosio, president of the Orange County Chamber of Commerce, noted DiNapoli received as much applause as Gov. Paterson got during the new governor”™s swearing-in ceremony. “He is well received on both sides of the aisle, as is Paterson,” said D”™Ambrosio. “That”™s a step in the right direction.”
After the luncheon, DiNapoli said he plans to be “accessible to the Hudson Valley and accountable to the people of the state. I travel through this region frequently from Long Island to Albany; you are on the radar.”
“It sounds like it going to be a rough few years,” said Dave Hendrickson, owner of Signet Staging, a media production company, in Lagrangeville.
Hendrickson has been in business two decades and says this is the worst downtime he”™s ever experienced. “We have had to cut staff. We had 14 people working for us, and we are now down to eight … and we are all multitasking ”“ including my wife, who works for the company part time and took a second job so we could make ends meet personally.
“Just meeting the health care needs of my employees has been a challenge. The increases just keep on coming with no end in sight. For me, I”™m just trying to stay in business and have been working many ”˜in-kind arrangements”™ with other businesses so we can help each other. Basically, it sounds like we”™re paying for three generations of pensions.
“It makes you wonder how we can continue this pattern and stay afloat.”
