Dem landslide: Business leaders want Spitzer to heed concerns

BYLINE: Staff Report

The overwhelming election of Democrat Eliot Spitzer to the governor's mansion and the surge of Democrats in Washington has upstate businesspeople hopeful that politicial change will help, not hurt, their business prospects.

The last time a Democratic governor was paired with a Democratic Assembly, from 1982 to 1994, it was bad news for business, said Dave Bobrek, president of Blasch Precision Ceramics and chairman of the Chief Executives Network, an organization of 75 small and medium-sized Capital Region manufacturers.

During those years, Bobrek said business was "shunned" by Gov. Mario Cuomo. "You couldn't get the time of day from him, and that's a fact. ... Manufacturers in the state are concerned about those kinds of issues happening with a Democratic administration."

Adam Madkour, president and CEO of Saratoga Spring Water Co., is hopeful a Democratic governor can force a Democratic Assembly to lower workers' compensation insurance costs. Republican George Pataki could not.

Spitzer needs to sit down with Assembly Speaker Sheldon Silver and the labor unions and convince them the workers' comp law and the scaffolding law need to be changed to reduce costs for business, said Roger Hannay, president of Hannay Reels Inc. in Westerlo.

"The Pataki of the last eight years hasn't been very business-friendly," Hannay said. "In my opinion, he hasn't had the leadership horsepower to carry anything out."

Spitzer's support of the deal to bring computer-chip maker Advanced Micro Devices Inc. to Malta will be crucial, according to Kevin O'Connor, CEO of Tech Valley Communications. The state offered AMD $1.2 billion to build a $3 billion- plus chip plant at the Luther Forest Technology Campus.

"I know Spitzer was supportive of it and he would move it forward," O'Connor said.

O'Connor was impressed with the people surrounding Spitzer.

"I saw people who came out of the technology sector, younger businesspeople," O'Connor said. "To the extent that those people find ways into pivotal roles in state government, I think he's going to bring an exciting change."


'Good news for small business'

Robert Hinckley, vice president of government and external relations for Capital District Physicians' Health Plan, said he's encouraged by Spitzer's support for closing unneeded hospitals and increasing state money spent on primary care. Those were both recommendations from the state Commission on Health Care Facilities in the 21st Century.

"The governor-elect has said that he understands the need to reduce capacity and that perhaps closings are necessary," Hinckley said.

Empire State Restaurant and Tavern Association executive director Scott Wexler predicted Spitzer will be good for business.

"Here's a person who, I think, we all believe is going to change the culture in government and I think that's good news for small business," said Wexler.

Wexler noted Spitzer never endorsed the so-called Wal-Mart health insurance bill that would have required large employers to pay for at least minimal health care coverage for employees. The legislation was backed by unions and the Working Families Party, which supported Spitzer in the election.


'A good grasp of business issues'

Even though Spitzer earned a reputation for taking on powerful business interests, he isn't shackled with the stereotypes that usually come from being a New York Democrat, according to Dave Rubin, president of Sano-Rubin Construction Co. in Albany.

"I just find he has a very good grasp of the business issues and what needs to happen to make the state more business-friendly and how important that is for the state," said Rubin.

Peter Elitzer, president of Peter Harris Clothes and Label Shopper, is cautiously optimistic Spitzer will deliver on promises to improve upstate's economy.

"My only fear with Spitzer is he probably has at least one eye on the presidency," Elitzer said. "I hope he's making sure he's doing what's best and right for New York state and worrying less about the national agenda."


'Things don't happen overnight'

The shift in the House of Representatives from the GOP to the Democrats has pluses and minuses, said Kelly Lovell, outgoing chief executive of the Center for Economic Growth Inc.

Republican Rep. John Sweeney held powerful committee seats and steered money into the area. Kirsten Gillibrand, as a freshman representative, will not have that influence initially, Lovell said.

"For a while, we'll have a little bit of a void in that aspect. I don't think people realize how far-reaching it was. The Luther Forest deal could not have happened without his [Sweeney's] direct impact of bringing federal transportation and infrastructure dollars to the table."

The power shift in Congress is good and bad for insurers, said Hinckley of CDPHP. He worries Democrats will change the Medicare Part D prescription drug program.

"Health plans have invested significant resources and significant time in the education of seniors to bring these plans on line. If there are drastic changes now, it could cause a lot of confusion, " Hinckley said.

But he'd like to see Democrats kill Republican plans for small business health insurance purchasing programs that cross state lines because these association health plans could cherry-pick the best risks and leave local insurance companies to cover those left behind, resulting in higher premiums.

For Tech Valley's O'Connor, a Democratic Congress is a good thing.

"Federal policy had been skewed overwhelmingly toward larger companies and, of course, in my world it's all about Verizon or AT&T. But you know that federal regulators have consistently sided with larger industries in the telecom landscape. I think this is going to have a tremendous impact on the telecom legislation currently being considered by Congress," he said.

Daniel Burke, president of Glens Falls-based TD Banknorth New York, doesn't see any major impact on New York financial institutions as a result of the elections.

"From my perspective, not a lot is going to change in how we do our day-to-day business," Burke said. "If [the Democrats] want to address certain issues like predatory lending or affordable housing, there could be some rule changes, but those things don't happen overnight."