economy

Genesee County's unemployment rate dropped to 6.6 percent in May, four points lower than May 2009, and five points lower than April.

Batavia's unemployment rate is the best its been since November, 2008, when the rate was 6.0.

The official numbers confirm anecdotal evidence of an improving employment picture provided last week by Scott Gage, director of the Genesee County Career Center.

The positive trend is ahead of the curve for New York State, which saw only a one point improvement in the job picture, with the state going from 8.4 to 8.3 year-over-year.

Genesee County is also faring better than all of the surrounding counties, which continue to have unemployment rates of at least 7 percent, with Wyoming and Orleans counties above 8 percent.

The Buffalo area's 7.6 percent unemployment rate is the best it's been since December 2008, when the rate was 6.8 percent. Rochester's rate of 7.3 percent is also a big improvement over the previous 16 months.

The economy seems to be turning around, according to Scott Gage, director of the Genesee County Career Center.

New job orders -- companies posting jobs at the career center -- are up to 80 to 90 a week, nearly double what job orders were last year.

And there are fewer people showing up for the center's weekly unemployment orientation classes.

"Obviously a lot of it is seasonal and service sector jobs, such as Darien Lake, but there is also some manufacturing being done, and some of the food processing people are actually increasing the number of year-around lines, too," Gage said.

He also said there are more supervisor-level jobs coming in.

Gage shared his news during the Ways and Means Committee meeting.

Legislator Ed Dejaneiro added his own anecdotal evidence of a turn-around.

“I received a call yesterday from a guy who has been unemployed for two years, and he just got a job, in Batavia," Dejaneiro said. "A good paying job."

The state's official employment numbers should be out next week.

Recent editorials in the Daily News, while defending the Genesee County Nursing Home, have been critical towards the funding of a new set of T-Hangars at the Genesee County Airport.  The usual airport slurs such as the "Rich man's playground" and the "Rich get richer" or "Benefits very few" are being used again.  It is important to remember that the Airport is an integral part of our local transportation network and critical to the continued development of the local economy. 

All of the residents of Genesee County benefit directly from the operations of the airport on Saile Drive just as they benefit from a well maintained system of roads and bridges.  In fact, it can be argued from a financial standpoint that they get back more than they put in.

In 2009, Genesee County spent $547,338.07 to operate its airport.  This money was appropriated from the General Fund, which is supported with the property tax levy among other items.  Genesee County staffs the airport and rents or leases property, hangars and tie-down spaces to private individuals and businesses.  In addition, the county sells fuel to based and transient aircraft.  These two revenue sources generated $581,455.12 in 2009 for a total surplus of $34,117.05.  A portion of this surplus, $15,008.05 was used to payback a shortfall in 2008 and the remainder, $19,109.00, was placed in a deferred revenue to be used to offset future airport expenses.  The shortfall in 2008, since paid back, was the first time since 2000 that the airport cost property taxpayers a single penny.

From an operational standpoint the County Airport is cost neutral to property taxpayers.  There is however a tremendous amount of economic and social impact created by the activities at the Genesee County Airport.  Boshart Enterprises and Aircraft Services operate from the Main Hangar at the airport.  This is a successful private business that employees several people.  Several prominent local companies such as Milton Cat, Innovative Energy, Lowe's, National Grid, Western New York Energy and others rely on the airport to run their business.  Mercy Flight houses a aeromedical unit and helicopter at the airport that allows them to respond within minutes of an accident in Genesee County.  In addition, although some events are no longer hosted, the airport supports local community services by hosting pancake breakfasts, meetings, educational tours and other promotional events.

The county does a significant amount of capital development at the airport as well.  Most of these projects are funded with federal and state aid--to the tune of 97.5 cents on the dollar.  These federal and state funds are not generated by income or other payroll taxes, but through fees assessed only to airport businesses and air travellers.  These Airport Improvement Program (AIP) grants fund everything from security improvements to runway maintenance and generate and support local jobs when work is awarded at the airport.  Since 2005 Genesee County has contributed $73,129 towards AIP projects and by doing so has leveraged nearly $3 million in infrastructure improvements.  That is $3 million pumped into the local economy via jobs, supplies and services.  The county share of these projects is funded with a portion of the 1% additional sales tax the county collects to fund capital projects and pay long term debt.  The average annual contribution of sales tax to the airport is $14,625.80, which is typically less than the surplus produced by airport operations.

From time to time the county also receives grants from the state to pay for facility improvements, which are not otherwise eligible for federal aid.  The Mercy Flight hangar, a 10-Bay T-Hangar constructed in 2008 and the most recent 8-Bay T-Hangar all are partially offset by state aid.  Both sets of T-Hangars received $300,000 grants that were a part of the 2005 Transportation Bond Act that was approved on a ballot by NYS voters that year.  The remaining portion of the hangars is funded locally.  In 2008, $78,995 was contributed from the airport's deferred revenue account to fund a portion of the remaining share of $395,000.  The payback on the county's investment of approximately $300,000 in each case is about 10.4 years based solely on revenue generated from the rental of the hangars--even less when you factor in additional fuel sales.  Not a bad return on investment for county taxpayers.

So while I can truly appreciate folks trying to garner support for the County Nursing Home and its current and future residents, it is not fair to label the Airport as "Bad" for the County.

As factory jobs have moved overseas, Western New Yorkers are making less and less money, according to a recent study from the University of Buffalo.

From 2004 to 2008, low-paying jobs -- those paying less than $30,000 per year -- increased 17 percent, while mid-wage jobs ($30,000 to $70,000) decreased 10 percent.

From the press release:

"These findings portray a new economic reality for Western New York that's in stark contrast to decades past, when the region paid some of the highest wages in the country," said Kathryn A. Foster, economics institute director. "It raises a host of questions about how to build and sustain economic security for Western New Yorkers."

During this same period, good-paying jobs -- above $70,000 -- have increased 6 percent. Those jobs comprise about 8 percent of the workforce, and the other two sectors are split evenly at 46 percent.

The federal poverty line for a single person is $10,830. For two people living together, it's $14,570. According to the report, Penn State’s Living Wage Calculator (meeting basic expenses), a single person should earn $18,300 in Buffalo. A single parent with a 5-year-old child needs $36,000 annually to meet basic needs.

A full-time, minimum wage job pays $15,000 annually. The median income in WNY is $31,080.

In 2008 dollars, a typical factory job from the 1970s might pay $60,000.

The report uses a fictional three-generation family to illustrate how the loss of good-paying factory work has forced both parents in a family of four to work and that family has less to fall back on.

But WNY is not alone. Low-paying service-sector jobs have been growing at about the same rate across the country, according to the report, though those jobs comprise just 43 percent of the work force.

As factories have closed, fewer and fewer workers enjoyed the benefits of organized labor:

"As both cause and reflection of the changing economy and wage structures, the percentage of workers represented by labor unions dropped steadily since the 1950s, from a national high of 35 percent to a current level of 12 percent. Unionization levels in the Buffalo Niagara region have mirrored national trends, particularly as manufacturing jobs have fallen. Yet the region’s unionization levels are consistently above national averages. Metro Buffalo’s 17-percent unionization rate in 2009 for private-sector workers was more than two times the 7-percent private-sector unionization rate for the nation."

Clearly, although the report concentrates on Buffalo as "Western New York," these issues do appear to be regionwide.

Full report available for download (pdf).

Sen. Mike Ranzenhofer (R-61) wants to give New York businesses that hire from the ranks of the unemployed a $3,000 tax credit.

Ranzenhofer announced his proposed legislation today in Batavia at the Genesee County Career Center on East Main Street.

"It's a win, win, win situation," Ranzehofer said. "It helps people who are looking for work. It's good for employers. But it's also good for the economy."

Under the proposal, New York businesses that hire a person currently drawing unemployment benefits will get a $3,000 tax break.

There are currently 300,000 people out of work, Ranzenhofer said, and among those drawing unemployment, they are getting checks averaging $314 per week. Razenhofer said his proposed tax credit will pay for itself in 10 weeks with cost savings on unemployment benefits.

Unemployment benefits can be drawn for two years.

Ranzenhofer also said that by putting more people back to work, those people will have more money to spend, generating more tax revenue for the state.

While the tax incentive itself may not spur some employers to hire -- challenged as they are by other expenses, from health insurance, taxes and the cost of equipment upgrades -- the tax credit may be just what it takes to get other businesses to add new positions.

"To do nothing and not give them this kind of incentive, when it doesn't cost us any money, is not a good thing," Ranzenhofer said.

While it would be better to lower the tax burden on New York businesses, Ranzenhofer said, "I don't see that happening this year."

Scott Gage, executive director of the jobs center, praised the legislation.

"This is going to be an opportunity for people who have retooled their skills during this economic downturn to be hired and maybe they would have got that opportunity if not for the resources created by this tax credit," Gage said.

According to this interactive map from the New York Times, 8 percent of Genesee County residents receive food stamps. That's up 16 percent from 2007.

Compared to other GLOW counties:

• Orleans, 12 percent, up 25 percent
• Livingston, 9 percent, up 41 percent
• Wyoming, 7 percent, up 28 percent.

Of the four counties, Orleans has the largest percentage of children receiving food stamps at 23 percent, which is close to the national average of 1-in-four children on assistance.

Sen. Charles Schumer was in Batavia yesterday to tell local dairy farmers that he is working to bring in federal dollars to help their beleaguered industry.

But he also gave a pep talk for America. WBTA posted the audio (MP3).

Here’s the truth. People do’t like to hear it, but it’s the truth. For the last 15 years under Democratic and Republican presidents, here’s what America did: We consumed more than we produced. We borrowed more than we saved. We imported more than we exported.  We were the great production giant of the world. In the last 15 or 20 years, you know what we were? This big giant, big muscles, strong, astride the globe, stuffing our face with candy.

Schumer said Americans need to become a nation of producers again -- saving and exporting, rather than spending and importing.

But America has one advantage, Schumer said: there's no barrier to any person doing whatever he or she wants with his or her life.

We’ve gotten off track. We’ve gotten too fat. We can get back on track. Only America has the system that says, ‘I don’t care who you are, how much money you have, what your daddy did, or mom, you can achieve the stars if you work hard.' So the $64,000 question is, what are the policies that get us back and we’ll be giant again.

Photo courtesy WBTA.

I say it all the time -- if Western New York is going to turn itself around, to really spur a new era of job growth and economic vitality, it's going to take homegrown businesses leading the way. It's not going to happen by trying to recruit out-of-state industries into the region.

Daily Yonder has a post today that backs that supposition. It's about how North Carolina paid Dell a lot of money to locate a facility there, but now Dell is closing. Meanwhile, a locally grown company that got almost no government assistance is adding 600 jobs.

When are we going to halt public expenditures on the "buffalo hunt" for footloose industry and instead focus our resources and efforts on the sector that produces by far most of the jobs -- existing industry and homegrown business?

Note, that the author isn't against the kind of infrastructure development going on at the new agri-business park (though I know some of our conservative readers will take issue with the expenditure). He's talking about tax breaks and outright grants to bring in business.

The scholarly literature on incentives shows that they are a very poor investment of public resources. And, of course, the business sector has become expert at playing off one state against another in something akin to corporate extortion; and who can blame them?

Imagine if the South in general and North Carolina in particular had put all of the money spent on industrial recruitment into education, training and small business support. We would be watching even more Quintiles, Cree, PPD, Southern Seasons, Performance Bicycle and other homegrown entrepreneurial success stories all across North Carolina. And, although there are no silver bullets in economic development, homegrown businesses are more likely to stay put, invest in the local community, provide stable civic leadership and keep the control and wealth local instead of away at some remote corporate headquarters.

I continue to maintain that we need to find some way to spur more entrepreneurship, to encourage people already living and working here to take their great ideas and turn them into businesses. If we do invest (as taxpayers) in job growth (not saying we should, just if we do), it should be in businesses started locally, not in recruitment.

Genesee County's jobless rate continues to be a bit better than New York as a whole, but that's only looking at the glass as half full.

From the half-empty perspective, there were more people unemployed in Genesee County in October than there were in September.

The county's rate inched up from 7.1 percent to 7.3 percent.  (full data from the state here)

Meanwhile, the state rate climbed to 9 percent.

The even less rosy number is the jump over the past year for Genesee County from a 5.2 percent unemployment rate to the current 7.3 percent.

Roughly 15 people lost good-paying jobs this week at Batavia-based Graham Corp.. The across-the-board cuts were a necessary belt-tightening measure in the midst of a lackluster economy.

That's according to Vice President and Chief Financial Officer Jeff Glajch, who confirmed the rumored layoffs this afternoon.

"I feel sorry for the workers," he said. "But we needed to adjust to the marketplace in this sluggish economy. Things aren't getting worse, but they aren't getting better either."

It's the second round of job cuts this year. Slightly more than 10 percent of the engineering and manufacturing company's workforce was eliminated in January. 

That amounted to about 30 jobs at a time when the company was facing a 40-percent loss in revenue, the CFO said. Nonetheless, in May it received Empire Zone tax incentives.

It is the rare, if not the only, publicly traded company in Batavia, with offices and a production plant at 20 Florence Ave.. It has been in business since World War II.

It engineers and makes vacuum and heat-transfer equipment that has broad applications, from making synthetic fibers, petroleum products, electric power and fertilizer, to processing food, pharmaceuticals, paper and steel. Half its good are sold abroad.

Things were going great guns for Graham by mid-2008, when it made Business Week's list of the fastest-growing small companies.

China and other foreign markets' thirst for oil in 2007-08 created a robust demand for Graham's goods. Orders placed then continued to have a postive impact on the company's finances over the first three fiscal quarters of 2008-09 (the company's fiscal year runs April 1 through March 31).

At its peak, it had more than 300 employees and its stock was trading at a high of $50.98 a share. Its stock closed today at $14.68 a share.

As with other industries, the orders tapered off and the forecast today is a question mark. Looking ahead, the CFO said he hopes there won't be pink slips come December, but "I can't promise anything, we have to wait and see."

Relative to our discussions recently about dairy farms is this chart showing the decline in food-dollar share going to farmers since 1950.

As Daily Yonder points out, some of the decline is due to the increase the amount of money people now spend eating out rather than at home. While eating out doesn't mean farmers make less, per se, it does mean the overall amount of dollars spent on food has increased, with a good portion going to the mark-up of restaurants.  (Sadly for social capital, much of the increase has gone to fast-food chains, where people are generally less social than in the corner diner.)

Now, there has been some relief for consumers recently, with grocery prices dropping as much as 25 percent on some items, but that doesn't necessarily spell relief for farmers.

There are numerous problems facing farmers, from the rise of conglomerate buyers (decreased competition) to price discovery structures that may not fit with modern technology and communication.

Still, this chart backs up something Steve Hawley told me two days ago: Farmers he knows are getting the same price for their products that he got when he was a hog- and cash-crop farmer 30 years ago.

Meanwhile, all of the costs associated with running a farm has continued to go up, from labor to fuel and fertilizer and insurance.

Farmers are in a tough spot and now we have China threatening a trade war over chickens and tires.

A lot of these problems seem inter-related, from high government spending driving up taxes, to the purpose of anti-trust law being turned from its original intent, which was to ensure small-business competition. The law has morphed into ensuring that consumers get the cheapest price at Wal-Mart, thus fueling the rise of conglomerates and pushing U.S. jobs overseas in search of super-cheap labor.

This isn't a problem the government can necessarily fix for us. Consumers need to be smarter about how they flex their purchasing power, spending more money with locally owned businesses and avoiding big-box conglomerate retailers as much as possible.

Especially, buy locally produced food as much as possible.

Genesee County continues to do a bit better than the rest of the state, and the nation, on employment.

The unemployment rate for the county dropped to 6.9 percent in August, down from 7 percent in July.

New York's jobless rate hit 9 percent, however, the highest level in 26 years.

The approval of $1 million for Phase 2 of the Western New York Technology and Advanced Manufacturing Park (STAMP) was granted by the Empire State Development Corporation today.

Senator Michael Ranzenhofer was among those who applauded the allocation to help build the Western New York Technology and Advanced Manufacturing Park (STAMP). He sent along this press release:

“The WNY STAMP park project allows Genesee County to compete in a 21st Century global economy. The project paves the way for technologically advanced companies that manufacture computer chips, semi-conductors and photovoltaic cells for solar power to locate in Western New York. This project would create over 9,300 jobs here in Western New York."

The WNY STAMP park has been planned as a prime mega-site, suitable for large scale advanced manufacturing projects. The 1,340 acre project, located in Alabama near the intersection of Route 77 and Judge Road, will be the second of only one other similar park in New York State. Phase II of the project allows the Genesee County Economic Development Center to complete design and engineering work.

Senator Ranzenhofer expressed appreciation to the efforts of many to move the project to the next phase.

“I would like to thank Senator Mary Lou Rath, Senator Bill Stachowski, Assemblyman Steve Hawley, Assemblyman Dan Burling, Genesee County Economic Development Center President and CEO Steve Hyde and the Empire State Development Corporation for their tireless efforts to create a business-friendly environment and create jobs in Western New York."

Genesee County Economic Development Center President and CEO Steve Hyde had this to say:

“The WNY STAMP (Science, Technology, Advanced Manufacturing Park) project, located in close proximity to the NYS Thruway in the Town of Alabama, Genesee County, is a transformational regional effort which will, over the long term, help to transform Western NY’s economy from Buffalo to Rochester by growing high paying, advance manufacturing and technology oriented jobs. This...site is being developed as NY’s next generation Mega-Site similar to Luther Forest, the home of Global Foundries and AMD’s recent multi-billion investment.

"...I, along with many of the elected officials and people of Genesee County and the region, would like to thank Senator Ranzenhofer, and his predecessor Senator Rath, for all the support and hard work that has gone into helping WNY STAMP become a reality.” 

New York has lost more than 160,000 manufacturing jobs and Sen. Kirsten Gillibrand wants to do something about it.

That's noble, but her four-point plan doesn't address the major issues causing the swift decline of manufacturing jobs.

The main factors leading to closed plants and reduced workforces are trade imbalances, large chains forcing manufactures to reduce costs unreasonably, and New York's burdensome regulatory environment and high taxes.

Gillibrand's calls for manageable health care for small businesses and the self-employed, upgraded rail infrastructure, transition manufacturing to clean engergy production and expand a government program called manufacturing Extension Partnership.

Of course, health care costs are a major obstacle to small business start-ups, and providing adequate transportation to get goods to market is a reasonable role for government, and while clean energy is a noble idea, if the free market rejects it, what right does the government have to force the issue?

Gillibrand can't do much about Albany, but she is in a position to impact trade issues as well as anti-competitive practices of multinational chains such as Wal-Mart and Home Depot.

Full release after the jump:

Washington, D.C. – New York has lost more than 160,000 manufacturing jobs since 2001, or nearly one-quarter of its manufacturing base. To help New York’s manufactures get back on track immediately and to strengthen them for the long term, U.S. Senator Kirsten Gillibrand, a member of the Senate Environment and Public Works Committee, today unveiled her plan to help small and mid-sized businesses afford health care, open and expand new markets, and transition to clean energy production that will power New York and the country for decades to come.

“It's no secret that manufacturing has been struggling in New York and throughout the country,” Senator Gillibrand said. “New York’s manufacturers powered us through the 20th century, but have been among those hardest hit by these difficult economic times. We cannot rebuild our economy without our manufacturers. We need to get New York’s small and mid-sized businesses back on track today, and harness the power of our manufacturing tradition to rebuild and fuel the new economy. My plan will help power our economy through the 21st century – creating thousands of new, good-paying jobs right here in New York.”
 
Every corner of New York State has been crippled by manufacturing job loss. In fact, 52 of New York’s 62 counties show significant loss of manufacturing jobs since 2001, with the rest only showing short-term, unsustainable gains.

According to Senator Gillibrand’s report, every corner of New York has shed manufacturing jobs since the start of the new century.


·        New York City lost 58,507 manufacturing jobs from 2001 to 2008. However, in the past ten years, 2,385 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 
·        Western New York lost 23,627 manufacturing jobs from 2001 to 2008. However, in the past ten years, 1,583 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The Rochester-Finger Lakes Region lost 26,769 manufacturing jobs from 2001 to 2008. However, in the past ten years, 1,329 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        Central New York lost 14,140 manufacturing jobs from 2001 to 2008. However, in the past ten years, 1,333 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The Southern Tier lost 6,332 manufacturing jobs from 2001 to 2008. However, in the past ten years, 590 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The Capital Region lost 7,367 manufacturing jobs from 2001 to 2008. However, in the past ten years, 771 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The North Country lost 3,236 manufacturing jobs from 2001 to 2008. However, in the past ten years, 395 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The Hudson Valley lost 6,791 manufacturing jobs from 2001 to 2008. However, in the past ten years, 626 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        Long Island lost 16,841 manufacturing jobs from 2001 to 2008. However, in the past ten years, 867 companies have benefited as a result of the MEP program, including retaining and creating new jobs.


To help New York’s small and medium-sized businesses get back on track now and transition New York’s manufactures to be the clean energy producers that will fuel New York’s economy for the long term, Senator Gillibrand unveiled her plan:

 

1.     Make Health Care Affordable for Small Businesses and the Self-Employed. More than half of America’s uninsured work for small businesses or are self employed. Senator Gillibrand is pushing the Small Business Health Options Program (SHOP) Act. This legislation would make health care affordable by allowing small businesses to buy into an insurance pool with other businesses – reducing costs for all by spreading out risk. The SHOP Act would also offer tax credits for small businesses and the self-employed. Businesses with less than 50 employees would receive a tax credit of $1,000 for each insured employee -- $2,000 per family. For the self employed, the tax credit would be $1,800 for individuals and $3,600 for families.

 
2.      Upgrade Rail Infrastructure to Help Businesses Connect to New Markets, Cut Costs, Move Goods Faster, Easier and Cleaner. New York has over 1,200 miles of short-line railroads – connecting manufacturers and communities to America’s rail system and business hubs. To incentivize upgrades to New York’s short-line railroads so more New York businesses can take advantage of them, Senator Gillibrand is cosponsoring bipartisan legislation that will increase the Short Line Railroad Rehabilitation Tax Credit from $3,500 to $4,500 and extend these tax credits through 2013.

Freight rail helps cut emissions, reduces highway congestion and saves businesses money. In fact, one freight train can take upwards of 300 trucks off New York’s highways. And one gallon of gasoline can move one ton of freight from Buffalo to New York City. They help attract new businesses to New York and help existing manufacturers move their products to larger markets. For every $1 invested by the federal government to maintain short line freight rails, these tax credits would leverage $2 in private investments, which are set to expire at the end of this year. By expanding and extending these tax credits, Senator Gillibrand is incentivizing upgrades to our rail infrastructure so more businesses can use short line railroads to move goods and services to new markets, and compete and succeed in the economy.


3.      Transition New York Manufacturers To Clean Energy Production. Senator Gillibrand is working with Senator Sherrod Brown (D-OH) to introduce the Investments for Manufacturing Progress and Clean Technology (IMPACT) Act this week. The legislation would invest $30 billion for states to establish a Manufacturing Revolving Loan Fund – helping small and medium-sized businesses retool, expand or establish homegrown clean energy manufacturing operation. The loans would help existing manufacturers get the capital they need to transition to clean energy production, and help get new businesses off the ground.

The IMPACT Act  would also invest $1.5 billion over five years for the Manufacturing Extension Partnership (MEP) – helping manufacturers access clean energy markets and transition to new, innovative, clean energy manufacturing technologies. This would increase the federal share of MEP funding from one-third to one-half.

Between 2000 and 2003 in New York, a network of 10 independent non-profit organizations overseen by NYSTAR – the New York State Foundation for Science, Technology and Innovation – led MEP programs that helped New York manufacturers create or save 4,154 jobs, and earn $587 million in new revenue, cost savings and capital investments.

America imports 70 percent of our clean energy systems and components. America cannot afford to keep importing foreign fossil fuels, and cannot afford to let other countries take the lead in the new clean energy economy. The IMPACT Act would help make New York a leader in the industry, and create thousands of new jobs for the state.


4.      Arm MEP With Resources to Make New York Leader in New Energy Economy. The federal Manufacturing Extension Partnership (MEP) Program helps many manufacturers to improve their companies. Senator Gillibrand said the MEP Program has helped 9,881 manufacturing companies in New York over the last ten years and argued that the program is needed now more than ever. Senator Gillibrand is calling for $131.8 million to fully fund the federal MEP program as part of the America COMPETES Act to make sure the program has the resources it needs to transition more New York manufacturers to clean energy production, and attract new clean energy manufactures to New York.

The numbers for New York's economy don't look good:

• Economic indicators have dropped 13 of the past 14 months
• Unemployment stands at 8 percent.
• Housing sales were down 21 percent last month.

And those are just the transitory, economic fluctuations that should be reasonably expected in a dynamic system.

New York, especially Western New York, suffers from longer-term economic trends that must be addressed whether we want to improve our standing in short-term fluctuations or build a strong economic foundation.

The New York State Association of Counties, which put out a press release prompting this post, jumps right to the conclusion that what is needed is more government, more stimulus, more taxpayer dollars.

Can the government really spend New York out of its current problems?

The government's power to spend money is mind boggling, but what really creates jobs and growth are private businesses making investments and taking risks.

Some of what is needed in New York is to clean up the mess in Albany, reduce the state regulatory burden and lower taxes.

But even with its faults, New York, especially WNY, has a lot going for it.  Genesee, in particular, has access to inexpensive power, reliable rail and road transportation, a stable workforce, inexpensive housing, plenty of land and water, respected school systems and a great natural environment.

There's no reason jobs can't be created here.

But growth won't come from government programs.  What WNY needs is a resurgence of entrepreneurship -- daring men and women who want to start businesses right here at home.

The biggest struggle WNY faces is how to convince business-minded people to take up the challenge of starting new companies.  And again, I'm not sure a government program is the answer.  People need to come to this conclusion on their own, but how to get the ball rolling ...

WNY was built by daring entrepreneurs, and only entrepreneurs will save it.

Full NYSAC press release after the jump:

“The Economy Watch continues to show that our state is suffering from severe economic decline. State and local leaders need to do everything we can to leverage funding from the federal stimulus plan to stem any further decline in our economy. We need to retain the jobs we have here in New York and attract new business and employment opportunities,” said NYSAC President Sarah Purdy, Yates County Administrator.
 

NYSAC’s Economy Watch is updated monthly and provides a range of data, including business cycle indicators, the consumer price index, job growth and layoff numbers, consumer and business confidence indicators, as well as local housing prices and sales activity.
 
Among the results presented in June’s Economy Watch include:
 

• The Index of Coincident Economic Indicators (ICEI), which has fallen for 13 of the past 14 months;
• Unemployment rates, which rose from 7.5% in April to 8.0% in May (before seasonal adjustment) despite increased seasonal hiring in many traditional tourist destination counties. A total of 29 counties exceed the State’s 8% unemployment rate;
• Housing sales declined by 21% for the month and have declined 40% since a year ago. Statewide sale prices have declined by 7.8% since a year ago and 11.8% since May of 2007;
• Consumer confidence increased in May by 5.5 points although New York consumer confidence indicators continued to be below the rest of the nation; and
• The Empire State Manufacturing Survey, which indicates that general business conditions for the state’s manufacturers continue to slip with indicators declining an additional 5 points in the last month.

 
The complete NYSAC Economy Watch, county level information where available, and a full description of each of the indicators and what they mean, can be obtained by visiting the NYSAC website.

The New York Stat Association of Counties is a bipartisan municipal association serving all 62 counties of New York State including the City of New York. Organized in 1925, NYSAC’s mission is to represent, educate and advocate for member counties and the thousands of elected and appointed county officials who serve the public.

It appears that there is even more to the communist/socialist turn of the U.S. than even I had previously thought.  Gorbachev, former Soviet leader and map head, believe that the west should adopt a plan that is more concerned with the welfare of the public and less so with the "super-profits and hyper-consumption".  He, like Obama, wants a plan "that will emphasize public needs and public goods, such as a cleaner environment, well-functioning infrastructure and public transportation, sound education and health systems and affordable housing."

My comrades rejoice, Perestroika is coming!

Apparently, Genesee County is so far slated to get an out-sized portion of Federal stimulus funds.

From the Jamestown Post-Journal:

Last week, an Associated Press study found that stimulus dollars announced so far are not going where they are needed the most and that stimulus spending is 50 percent higher in counties with the lowest unemployment rates compared to counties with the highest even though it is meant to put people back to work.

That holds true across New York state, according to an analysis of AP's figures by The Post-Journal. According to the analysis, eight of the top 10 counties receiving the most stimulus money per person in New York state are not in the top 10 for unemployment.

At the top of the list is Genesee County, which stands to gain $5.5 million in stimulus funding approved so far, or $93.81 per person, even though it ranks 34 in unemployment with a rate of 8.9 percent. Next is Seneca County, which stands to gain $3.1 million, or $91.70 per person, even though it ties Genesee County with an unemployment rate of 8.9 percent.

Likewise, eight of the 10 counties with the highest unemployment rates are not in the top 10 for stimulus funding. At the very bottom is Lewis County, which stands to gain only $842,667, or $31.83 per person, with an unemployment rate of 11.9 percent. Next is Hamilton County, population 5,075, which has so far gotten nothing but has an unemployment rate of 11.8 percent.

I haven't been able to find the original AP story to double check the figures. 

According to this article, however, Genesee County wasn't included in any of the latest round of my released by Gov. Paterson.

Rep. Chris Lee (R-26) is asking the government to step in and help save dealerships -- or at least the jobs they represent -- that have been slated for closure by Chrysler and General Motors.

In a statement, Lee said " the rapid and potentially disorderly elimination of thousands" of dealerships could put 150,000 people out of work.

Lee is asking the Treasury Administration's Auto Task Force to instead implement a plan that would allow for "market forces " to consolidate dealerships.

According to Lee's statement, "More than 60 members of congress, both Republicans and Democrats from districts all over the country, signed on in support of the letter.
 

Full press release after the jump.

Press Release:

WASHINGTON – Congressman Dan Maffei (D-NY) and Congressman Chris Lee (R-NY) are leading the effort to save local auto dealership jobs. Maffei and Lee wrote a letter to the Treasury Administration’s Auto Task Force, headed by Mr. Steven Rattner, to request the Task Force reconsider the forced closure of dealerships across the country in favor of a more flexible and transparent process that would allow for market forces to consolidate dealerships. More than 60 members of congress, both Republicans and Democrats from districts all over the country, signed on in support of the letter.
 
Congressman Dan Maffei said: “We all recognize that the economy is not favorable to the auto industry right now. We’ve seen layoffs from manufacturers and we expect to see more dealerships consolidate and close this year. However, forced closure of arbitrary dealers will not necessarily help automakers, and it certainly will not help our local economy. We are asking the Task Force to hold off on forced closures and allow more time for smarter consolidation and attrition of our local dealerships. These dealerships employ hundreds of people across our area in good-paying jobs, they sponsor our little league teams and our pancake breakfasts, they have been an integral part of our community for generations -- and all we are asking for is that they be allowed to make the best decisions possible for their businesses.”

Congressman Chris Lee added: “Hundreds of good-paying jobs in Western New York are tied to the future of local dealerships, and we can’t afford to lose them due to hasty decisions made in Washington. In many cases, dealerships are small, family-owned entities that are deeply connected to the communities they serve.  We have asked the auto task force to take a long, hard look at this issue to ensure an open and transparent process that is fair to both the dealers and their customers.”
 
Bailey Wood, a spokesman for the National Automobile Dealers Association (NADA), commended this action by Congress: “Representatives Maffei, Lee and more than 60 of their colleagues recognized the important role that neighborhood auto dealers play in their communities.  With the local auto dealer as the largest private employer in many small towns, the rapid disruption in the local job market will have an even greater negative impact on the local economy.  A more balanced and fair approach to the inevitable consolidation of dealerships will be better for all parties, and we strongly encourage the Auto Task Force and President Obama take heed of the suggestions made in this letter.”
 
A copy of the letter is below. A list of those Members who co-signed the letter will be released shortly.
 

 
The Honorable Steven Rattner
Counselor to the Secretary of the Treasury
United States Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220
 
Dear Mr. Rattner:
 
We are writing to express our serious concerns regarding the decision by the Auto Industry for the rapid and potentially disorderly elimination of thousands of Chrysler and General Motors dealerships.  This action, if implemented, could put approximately 150,000 people out of work.  Since these dealer reductions and its ripple effects would have a serious and adverse impact on the United States, we would like to ask you to inquire with the companies about their rationale for revoking franchise agreements with thousands of dealerships.
 
To justify these job losses, GM and Chrysler are apparently relying on a misperception that new car dealers create a cost burden to auto manufacturers.  This is not true, on average reportedly almost all of an automaker’s revenue comes from dealers purchasing the automakers’ vehicles.  Far from saving money, a rapid reduction in dealerships could very likely reduce GM’s and Chrysler’s revenue and market share.  
 
Automobile dealers are one of the largest private sector employers in the United States, providing tens of thousands of local jobs and contributing millions of dollars in tax revenues to states. Auto dealers are anchors in communities throughout the country and many times ownership is passed down from generation to generation. In addition many auto dealerships are minority owned and have traditionally provided strong local community support. Each dealership creates an average of 52 neighborhood jobs and these positions typically pay twice the national average as other retail-sector jobs.  Dealers have invested about $233 billion to create an auto sales network that provides a vast distribution and service channel for consumers.  In fact, automakers created the franchise dealer network specifically to lower their costs, as they outsource virtually all costs associated with selling and servicing cars. 
 
Last year, over a thousand auto dealers closed their doors for good.  Further thinning of the dealer ranks through normal market, dealer-driven consolidation, and other forces is inevitable.  The action being proposed has not taken into effect the impact on communities and workers, and without any evidence that massive and immediate dealer reductions are necessary to restore the financial health of GM and Chrysler.
 
We appreciate the enormity of the mission your Task Force has undertaken to help the auto industry.  However, we are concerned the reduction of dealerships, at a time when the national unemployment rate is rising, is counterproductive policy. We respectfully request that the Auto Task Force urge the companies to provide more transparency and justification on forced dealership closures, revisit their decision and consider the damaging effects on local communities.
 
Sincerely,
 
 

______________________________
Daniel B. Maffei
Member of Congress
 
______________________________
Christopher J. Lee
Member of Congress