Plan unveiled for upstate economy; State Senate GOP proposes $3.7 billion in incentives

Big tax breaks for industry, improvements to the region's aging infrastructure and added investments in new technologies are among the components of a $3.7 billion plan unveiled Tuesday by the Republican-led State Senate to help restore the upstate economy.

But the plan -- a mix of old and new ideas -- comes just weeks before lawmakers are scheduled to end their 2007 session on June 21, leaving in doubt how dozens of its features can be accomplished.

Senate Republicans insist the plan is the most comprehensive effort to address the region's economic need and to halt the population exodus. And, they insist, there is plenty of time for the proposals to be made into law -- even though it would require hundreds of millions of dollars in new tax breaks and incentives to be made part of a state budget that was already passed April 1.

"This is for real. This isn't for posturing," Senate Majority Leader Joseph Bruno said.

Senate officials said their plan would create 300,000 jobs, though it is unclear precisely where those jobs would be generated.

The proposal calls for nearly $1.2 billion in tax cuts and incentives for businesses for the fiscal year that began April 1. Such spending, Senate officials believe, could be made available through surplus funds.

Gov. Eliot L. Spitzer, who did not address specifics of the Senate plan, pointed to other successes in addressing the upstate economy.

"We are glad the Senate has joined us in this important effort," he said in a statement.

The Senate plan was released as the state's largest business lobby group issued a report showing that, once again, the state had the highest per capita tax burden in the nation.

The Business Council, using Census Bureau data, said the state's per capita tax burden was $5,770 in 2005 -- 36 percent higher than the national average. Connecticut, at $5,383, was second.

The report said New York ranked fourth in the nation in per capita property taxes. It ranked third in government debt -- 74 percent higher than the national average -- and, at $11,841, third in per capita government spending, or 48 percent higher than the national average.

The Senate Republican plan includes nearly $2.7 billion in an assortment of business tax cuts, targeting big manufacturers, businesses with fewer than 20 employees, textile companies, emerging technology firms and alternative energy companies.

It calls for more money for high-speed rail initiatives and new commerce hubs around regional airports. It envisions $100 million that would be earmarked by regional groups to keep and attract companies, new investments in agribusinesses and expanded state tourism incentives.

On the energy front, it would create a $350 million energy tax credit available to 386,000 small businesses across the state.

It also calls for keeping alive the state's Power for Jobs program, a lower-cost energy fund.

e-mail: tprecious@buffnews.com