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STATEMENT BY THE BUFFALO NIAGARA PARTNERSHIP
To the NYS Senate Standing Committee on Transportation
Buffalo and Erie County Historical Society
October 30, 2009

Chairman Dilan, members of the committee, thank you for the opportunity to speak to you here today on the important topic of Upstate transportation infrastructure funding. My name is Craig Turner, and I am senior director of public policy for the Buffalo Niagara Partnership, the Buffalo Niagara region’s largest employer advocacy and business development organization, representing 2,500 employers from throughout the region.

Thank you, also, for bringing this important topic to the public.

Earlier this year, the state legislature – including our Upstate representatives – supported the $2.5 billion bailout for the Metropolitan Transportation Authority. This, of course, was unprecedented, in that it addressed the infrastructure needs of one portion of the state but not the other – however, a promise was given that Upstate would receive its fair share later this year. You can imagine how dismayed, disappointed and upset our members were when a few weeks ago the governor announced that he would not be funding the Upstate infrastructure package.

Surely, Upstate recognizes the MTA’s importance to the economic vitality of Downstate. However, the quality of our infrastructure Upstate is on the same level of importance to us. In Buffalo Niagara, we hold our transportation infrastructure near and dear to our hearts – as it is the lifeblood of a number of our target industry sectors and a key component of our economic development.

We could not be a pivotal port of entry on the CanAm border that sees over $75 billion in goods cross our bridges annually if dilapidated infrastructure made it difficult to get through Buffalo Niagara and Upstate New York to the U.S. East Coast. Our position on the CanAm border is key to a thriving logistics industry.

Buffalo Niagara is not unique in Upstate for its vitality and growth in the agribusiness industry. But beyond fertile soils and a climate ripe for a wide variety of agricultural products, a major reason for the success of that industry is that we are within 500 miles of 55% of the total U.S. population and 63% of the total Canadian population. Our producers and processors must have access to that market, and that access depends upon good infrastructure.

That same advantage applies to advanced manufacturing – our proximity to the bulk of the world’s two largest trading partners’ population facilitates speed-to-market and just-in-time manufacturing. That’s part of the reason that Buffalo Niagara has seen tremendous growth and has growth potential in areas such as life sciences and renewable energy manufacturing.

Of course, as I reference spin-off work in industry sectors related to a strong and efficient transportation infrastructure system, I would be remiss if I didn’t talk about the sheer number of professional and construction jobs related directly to infrastructure maintenance, repair and capital projects. I don’t need to tell you the quality of these jobs, and proper investment in infrastructure projects would help to mitigate the sting of unemployment related to the recent recession.

From the economic development perspective, it is imperative that New York State continue to invest in infrastructure in Upstate, and it is disconcerting that such essential funding is being used as leverage. On behalf of our members, I ask you to urge the governor to provide the funding for Upstate and fight the budget battle on another turf. Incidentally, the Unshackle Upstate coalition has suggested a number of battlegrounds on which the budget debate can be fought, including Medicaid, the state pension system and consolidation opportunities. But that’s for another hearing.

Comptroller DiNapoli’s report released just yesterday, which detailed how 65% of the state’s Dedicated Highway and Bridge Trust Fund was not spent on transportation infrastructure, but siphoned into the general fund to cover state operations and debt service costs, is indicative of Albany’s lack of focus. The saga of transportation infrastructure funding in New York State is a poster child example of how taxpayers continue to finance big Albany government at the expense of essential services.

Once the funding is available, we must optimize the way the dollars are used. We would prefer to see it disseminated strategically toward projects that:

1. Are meaningful from an economic development standpoint
2. Enhance mobility
3. Relieve congestion
4. Preserve existing infrastructure

It is also important that the funding allocation system not only address state highways, but those highways under other jurisdictions that are key components of the regional infrastructure network.

Long-term commitment is essential: capital projects are not short-burn and need dedicated – and reliable – funding from start to completion. Our region’s employers, workforce and public rely upon predictable allocations of funds and the project timelines associated with them.

In addition, the state needs to continue to advocate for the reauthorization of federal transportation funding. Again, a long-term extension is essential, and the recent rescission of funding from New York State will already have a great impact on the various regions’ ability to produce the necessary work and conduct the necessary transportation analysis required to move transportation projects already in the pipeline to completion. Recently, we saw an influx of funding from the American Recovery and Reinvestment Act of 2009 dedicated more toward one-shot mill-and-fill projects rather than capital projects that enhance mobility and economic growth. Our region is in greater need of long-term visioning for our infrastructure system that includes the dedicated funding to implement that vision.

In conclusion, on behalf of the 2,500 members of the Buffalo Niagara Partnership, I urge you to support follow-through on Upstate’s dedicated infrastructure funding proposal, and urge the governor’s support for the package outside of the budget debate. With the state of Upstate’s economy and a workforce exhausted of unemployment, there are more appropriate areas on which to center the fiscal discussion.

Thank you.