Forget ol’ boys network, there’s a new sheriff in town

Lt. Gov. David A. Paterson told a women”™s business group in Westchester County last week that he will be the “sheriff” needed to enforce a state law and policy program to open doors for women- and minority-owned businesses in state contracting.

Speaking in White Plains at the annual Small Business Forum, Paterson called “shameful” the former Pataki administration”™s practice of awarding state contracts to an elite “old boys network” while neglecting some of the state”™s best and brightest talent among women and minority entrepreneurs. Failing to invest in its resources in the last decade, New York “has fallen to the lower echelon of economic development in the country,” he said.

By contrast, he said, the states of Georgia, Alabama and South Carolina have tripled the number of their small businesses in the same period. Those states have three times more minority-owned firms than does New York, although minorities make up a smaller percentage of their total population, he said.

The forum luncheon, at which the lieutenant governor gave the keynote speech through the pain of a recent root canal, was sponsored by the Women”™s Enterprise Development Center and state Sen. Suzi Oppenheimer, D-37^th District, Paterson”™s former Capitol colleague from his years as leader of the Senate”™s Democratic minority.

“I”™m not here to beat up on the previous administration,” said Paterson, who praised the renewable-resource energy policy he inherited from Republican leadership. “I”™m just here to beat up on what they did to women- and minority-owned firms.”

Paterson said 1,788 women and minority firms did business with the state in 1994, the last year of the Cuomo administration. At the start of 2007, only 309 such firms had state contracts, he said. As of February, the state”™s Minority and Women-Owned Business Enterprise program certified 6,975 minority- and women-owned businesses as qualified for state contracts, according to Spitzer”™s office.

While women-owned firms nationwide have grown by 20 percent and Hispanic-owned firms by 400 percent in the last decade, those minority entrepreneurs “are getting nowhere in New York state,” he said.

According to the governor”™s office, only 3 percent of state contracts in 2005 were awarded to women- or minority-owned businesses, although women own 26 percent of New York”™s small businesses and minorities own approximately 23 percent. Almost 57 percent of New York City construction firms are owned by minorities or women, but only 29 percent of the construction dollars are directed to such companies, according to the Spitzer administration.

“The results are absolutely horrible,” said Paterson, “about the worst thing I”™ve seen since joining the executive administration. I can”™t wait to reverse those statistics.”

Paterson heads the MWBE Leadership Council and the MWBE Corporate Roundtable, both of which were created in February by Spitzer”™s executive order. The 16-member Leadership Council includes top administrators from state agencies and public authorities who will look to identify and increase opportunities for minority- and women-owned businesses in the state procurement process. The Roundtable includes at least 13 executives from private corporations who will meet to recommend ways to increase state contracting and subcontracting for MWBE firms, Paterson said. Both groups will meet quarterly under Paterson”™s direction.

“In the end, the greatest attitude that will change the situation is strong leadership at the executive level,” he told his White Plains audience. “You need agency heads who care about this.”

Paterson indicated he will push those state chiefs in that direction. “We have a new enforcement individual in the state who”™s going to make sure that this happens ”“ and you”™re looking at him,” he said.

“As lieutenant governor, that”™s all I do ”“ look at the numbers and yell at people.”

“Help is on the way,” he told his predominantly female audience.

In a less serious moment, Paterson described the duties of a lieutenant governor:

“Call the governor”™s mansion in the morning. If he answers, you can pretty much go back to sleep.”