Governor Hochul Announces FY 2023 Investments to Expand Economic Opportunity

Governor Kathy college today announced the highlights of the budget’s economic development for fiscal year 2023. The historical plan calls for bold investments to expand economic opportunities for all New Yorker. These funds will, among other things, advance internet connectivity for all, revitalize and support small businesses, revitalize downtown areas across the state, make significant commitments to job training and workforce development, and support minority and women-owned businesses.

“This one-time budget will help us build a stronger, fairer economy for all New Yorkers as we emerge from the pandemic,” governor college called. “We invest in the industries of the future job skills Education New Yorkers need to succeed, the small businesses that are the backbone of our economy, and the digital infrastructure that is needed today, and I thank legislative leaders for their efforts to ensure a recovery that embraces all diversity reflected in the New York economy.

The state budget commits to investments that will transform the state’s digital infrastructure. The over $1 billion ConnectALL initiative — the largest investment in New York’s 21st-century infrastructure to date — will leverage public and private investment to connect New Yorkers in rural and urban areas nationwide to broadband and establish the first urban broadband program of its kind in the country. The state is unprecedented Investing in this vital infrastructure will help bring affordable broadband to millions of New Yorkers and fuel economic growth and local innovation well into the future.

In addition to groundbreaking investments in digital infrastructure, the state budget will eliminate a fee for laying high-speed fiber optic cables along state highways — lowering costsf High-speed broadband deployment to expand access in upstate communities. The approved budget authorizes the New York Power Authority (NYPA) to make available excess capacity in its fiber optic network, which runs along NYPA-owned and operated transmission lines, to provide affordable high-speed broadband in unserved and underserved communities across the state. Leveraging NYPA’s fiber optic infrastructure is expected to reduce the cost of broadband rollout in need communities, increase broadband access and lower broadband service costs for New Yorkers in those regions.

The state budget also includes a $1 billion investment in the state’s small businesses, including targeted programs to ensure all types of small businesses thrive across the state. Key components of this plan include:

  • Seed Funding for New Small Businesses – This initiative will provide flexible grants to support early-stage micro and small businesses in a recovering New York state economy. The program will ensure small businesses that opened their doors just before or during the COVID-19 pandemic have the means to continue to operatede and grow. This program builds on that of the state 800 million dollars Pandemic Small Business Recovery Grant Program, which has delivered more than $500 million to nearly 29,000 small businesses to date, 90% of which have gone to minority and women-owned businesses, and remains open applications.
  • A COVID Capital Expense Tax Credit for Small Businesses – This $250 million investment will provide small businesses with a 50% tax credit of up to $25,000 to help cover unexpected COVID-related costs small businesses have had to incur. This credit covers costs such as the purchase of cleaning supplies, outdoor heaters, air purifiers, vaccination/mask guidelines signs and contactless payment equipment.
  • Small business tax breaks – The state will give an estimated $100 million in tax breaks to 195,000 small businesses to help them keep their doors open.
  • Expanding access to capital and job-creating investments – This funding will provide access to capital, discounted financing and venture investment opportunities in New York small businesses with a focus on supporting socially and economically disadvantaged small business owners. The State Small Business Credit Initiative (SSBCI) funds will support both emerging and established small businesses through a range of programs designed to encourage innovation, provide additional opportunities for small businesses in government procurement, and small business for position for long-term viability.

Other components of the approved 2023 budget will invest in the industries that will drive New York’s growth:

  • The FAST NY Scholarship Program will develop shovel-ready locations to attract high-tech manufacturing, particularly semiconductor-related companies, while increasing the state’s attractiveness to large employers.
  • Standardization and centralization of venture competitions designed to match start-ups with investors and facilitate access to finance for new companies in the innovation sector.
  • Extension and Improvement of NYC Music and Theater Productions Tax Credit – continue to support this sector as Omicron impacts on these services.
  • Historic funding from the New York State Council on the Artsfollowing a record $100 million in fiscal 2022 grants to support the return of the arts statewide.

The state budget will invest $350 million to support wide-ranging, historic and coordinated investments in human resource development across all state agencies and agencies.

  • The Office for Labor and Economic Development at Empire State Development will Leverage Empire State Development’s relationships with employers to assess employer needs, develop customized regional training strategies, and support programs to train New Yorkers in the skills needed to succeed in in-demand fields. The office will work with the Regional Economic Development Councils, the Department of Labor, the State University of New York and the City University of New York, and other partners to ensure coordinated training and human resources strategies.
  • Flexible grants and capital administered by the new Office of Workforce Development, will support top-skills training efforts in New York state regions.
  • Targeted investments in teachers, healthcare workers, college apprenticeships and internships, mental health professionals and nurses.

The state budget demonstrates that New York is at the forefront of justice by accommodating its emerging cannabis industry and minority and women-owned businesses, including:

  • A $200 million fund come from fees and revenues from the cannabis industry and significant private capital investment to support socially and economic equity entrepreneurs in growing their adult cannabis businesses.
  • 11 million dollars Invest in faster certifications of minority and women-owned businesses (METs) and address the certification backlog and promote equal access to discounted loans for METs.

The state budget is also providing over $1 billion in new funding for economic and community development across a number of valuable programs, including Round XII of the Regional Economic Development Council (REDC) Awards and a sixth round the popular one Downtown Revitalization Initiative to include NY Forward as a means to improve support for smaller, rural communities. Additionally Household investments include: community-based grants to improvement of waterfront areas; the New York Works Economic Development Fund to create new jobs or preserve existing jobs; the RESTORE NY program, which aims to restore damaged properties; and additionally Funding for the Olympic Regional Development Authority to continue upgrading and upgrading facilities and ski areas.

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