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Economic stimulus must have real impact and not postpone reform
February 23, 2009

This week, our region, through the Greater Buffalo Niagara Regional Transportation Council (GBNRTC), submitted its list of infrastructure projects worth $52.9MM to be funded by federal stimulus money. Much credit goes to the GBNRTC for organizing with local municipalities – in a very short time – and submitting our region’s list. A total of 54 shovel-ready projects have been identified, as well as back-up projects should we be the beneficiaries of a “sweep” of unused stimulus funding. We hear that other regions have not been as meticulous, so there is hope that our good work will pay dividends in additional projects here being funded.

This is good news for our region. However, it is important that stimulus funds not be used to fund projects where state or local money had already been committed, only to have the state use that previously dedicated money to help close a budget deficit. Stimulus funding also must not be used as an excuse to avoid program and policy reforms, especially in Medicaid and K-12 education. The unaffordability of New York state government is nothing new: we’ve been heralding the hazards of Albany’s overspending for years and it was only a matter of time – recession or no recession – before the state would face its own fiscal crisis. It is clear the stimulus money will serve only as a bandage without the long-lasting effects it intends – if it is the only action taken. Absent long overdue reform of state government there will be no end in sight for employer and personal taxpayers, despite the stimulus.

Thus, the Partnership and Unshackle Upstate continue to urge state government to:

• Explore Medicaid reforms that would not only cut the cost of the program to taxpayers, but increase its effectiveness for the population it serves;
  
• Institute a property tax cap as proposed in 2008 by Governor Paterson; and
  
• Implement the recommendations of the New York State Commission on Local Government Efficiency and Competitiveness.

Interestingly, some governors are discussing refusing portions of the stimulus money. Yesterday, our U.S. Senators jumped on that idea, offering New York as a possible destination for unwanted funding. “We will put the money to good use, investing in education and new infrastructure, such as health care IT and high speed rail,” wrote Senators Schumer and Gillibrand in a letter to the President. That’s a viable notion with which we agree. However, I imagine that were this funding going for economic development initiatives such as new infrastructure, health care IT and high speed rail as the word “stimulus” would suggest, those governors wouldn’t be refusing the cash. We’re not sure if funding destined for unemployment in Louisiana can be used for high-speed rail in New York, but we’ll certainly take it if it can!

As part of our federal advocacy, two weeks ago Partnership staff joined with a coalition of chambers of commerce from throughout the Great Lakes region in Washington DC to lobby on behalf of the “Agenda for Jobs and Economic Transformation in the Great Lakes Region.” As a coalition, we focused on strategic investment and policymaking that can and should take place following the inevitably inefficient shotgun approach of the stimulus package. This advocacy is focused on long-term infrastructure investment, strengthening of trade corridors, and northern border management. The message was well-received (click here for the Buffalo News coverage) in spite of the fact that Washington was “all-stimulus, all-the-time” while we were there. But since the stimulus bill meant an influx in funding for in infrastructure projects in the Buffalo Niagara region, as well as important funding for UB2020 and brownfield redevelopment, we were willing to concede the attention.

Andrew J. Rudnick