THE SOUTHERN TIER ECONOMIC RECOVERY STRATEGY 2021

This year marks the tenth anniversary since the Regional Economic Development Councils (REDC) were created as a new economic development strategy in New York State, replacing the older top-down model with an innovative bottom-up approach that is meant to increase local stakeholders’ participation in shaping the vision and the priorities of each region. Since 2011 over $6.9 billion in State funding has been awarded to over 8,300 projects. Through the Consolidated Funding Application (CFA) a diverse range of projects has been funded thus far from hospitality and tourism initiatives to high-tech manufacturing and business incubators.

In 2011 Governor Cuomo created ten Regional Economic Development Councils: Western New York, Finger Lakes, Southern Tier, Central New York, Mohawk Valley, North Country, Capital Region, Mid-Hudson, New York City, and Long Island.

Each Council has developed its own strategic economic development plan to bolster economic activity, create new businesses, revitalize downtowns, invest in technology, and train skilled workforce. These plans address specific challenges and capitalize on unique assets that each region has to offer to allocate resources judiciously and stimulate economic activity. The plans are updated annually to include new challenges and opportunities. In 2021 specifically the post COVID-19 recovery efforts have become essential as well as investments in a more resilient economy. Public outreach and engagement are paramount in delineating actionable goals for each region.       

Regional Councils are organized in workgroups formed by stakeholders representing each region and engaging with local officials, businesses, community organizations, and academia to identify priorities, set goals, and design and implement strategies that best suit each region’s economic development objectives. The workgroups play an important role in identifying strong projects that can advance regional and state priorities.   

In 2015 The Southern Tier, Finger Lakes and Central New York regions became the winners of the Upstate Revitalization Initiative (URI) awards in the amount of $1.5 billion, with each region being awarded $500 million to spend on economic development projects over the span of five years.

In The Southern Tier the expectation was that the URI investment of $500 million would leverage more than $2.5 billion in private investment, create more than 10,200 jobs and have an overall economic impact of $3.4 billion over the span of five years. The focus has been on revitalizing distressed communities, spearheading innovation, attracting foreign investment, increasing exports, leveraging the region’s natural resources, strengthening regional industries ranging from advanced manufacturing to agriculture and tourism, and building a regional brand.

The Southern Tier 2021 Annual Report details the state of the region and highlights regional priorities – it can be found online at https://regionalcouncils.ny.gov/sites/default/files/2021-07/SouthernTier2021AnnualReport.pdf

The Southern Tier’s regional priorities, which are addressed by the workgroups include: The Greater Binghamton Innovation Ecosystem, Advanced Manufacturing, Food and Agriculture Industry, Innovative Culture, and Tourism Business.

A list of awarded projects over the past decade can be found at https://regionalcouncils.ny.gov/cfa/projects

The 2020 global pandemic caused disruption and forced the region to re-set its priorities. The Southern Tier Regional Economic Development Council has prepared an Economic Recovery Strategy that addresses COVID-19 related issues and reshapes the focus of the workgroups. The plan includes input from local municipalities, economic development agencies and industrial development agencies to bolster the economic recovery of the region and build resilience. The co-chairs of The Southern Tier Regional Council Dr. Kevin Drumm and Judy McKinney-Cherry described the plan as “pragmatic, ambitious, and forward-focused.”

The following overarching themes have emerged, and they will inform policy recommendations:

  • Expanding broadband access
  • Quality, affordable, and available childcare
  • Creating a unified workforce strategy

Statewide priorities include: childcare, economic and environmental justice, placemaking and downtown revitalization, and workforce development.

In 2021 the Regional Economic Development Councils compete for $150 million in capital funds and $75 million in Excelsior Tax Credits. Over thirty state programs participate in the Consolidated Funding Application (CFA) for state economic development resources from multiple agencies, representing a combined pool of grants, tax credits, and low-cost financing totaling over $750 million. Project readiness and the alignment with the strategic plan are of essence. The application process is open from May 10 to July 30. Learn more at https://apps.cio.ny.gov/apps/cfa/      

Learn about Regional Economic Development Councils at https://regionalcouncils.ny.gov

The Economic Outlook A Year into The Pandemic

Photo by Adrienne Andersen on Pexels.com

March 7th marks the one-year anniversary since New York State declared the state of emergency as a result of the COVID-19 pandemic. On March 20th, 2020 statewide stay-at-home order was declared, all non-essential businesses were ordered to close, and all non-essential gatherings and events were canceled or postponed. A year later, vaccinations are well under way, and the economy is re-opening step-by-step. New York Forward website provides current information by industry and re-opening phase, travel advisory guidelines, hot spots, as well as testing and vaccination sites. The grim reality is that the U.S. surpassed 500,000 deaths from COVID-19 on February 22nd, which makes the virus the leading cause of death in the country, along with heart disease and cancer. John Hopkins University has a Coronavirus Resource Center where you can track more data.

Consumer spending habits have changed. The lockdown has forced everyone to rethink their priorities and make adjustments. After the initial panic buying in March, April and May last year, when staple products were flying off the shelves, consumers have shifted their attention to remodeling their homes for the era of the indefinite home office, and replaced restaurant and entertainment expenses with home cooking and streaming services. Casual fashion has replaced business suits, and masks have made lipstick irrelevant. These are some of the few pandemic induced lifestyle changes. Read more about consumer spending in the U.S. in this Brookings Institution study.

The most dramatic change in our lives over the past year has been not being able to travel and spend time with family. Another significant change has been remote work and remote learning as the new norm, with some companies announcing indefinite work from home policies. The essential workers of course cannot work remotely, and hence they have been deemed indispensable to keeping our economy and daily lives running.  

A year later, we have adapted to wearing masks, using hand sanitizers, and staying six feet apart, while at the same time contemplating how the new normal would look like once the pandemic is over. Socializing in restaurants, cafes, theaters, museums, and art galleries is sorely missed, but there is light at the end of the tunnel.

Rapid testing and vaccinations are key to re-opening the economy. Google, for instance, is now offering its employees free weekly at home COVID-19 tests. Also, the company announced that its employees won’t return to office until September, and when they do, flexible work weeks will be assessed. Other companies have announced that a significant number of their employees could be working remotely over the next ten years, and some may work from home permanently.     

The debate over work-life balance is taking on a new meaning as working from home has eliminated some of the boundaries, and over-work is common. According to an article published in Bloomberg last April, “America’s always-on work culture has reached new heights.” One cannot escape work.

As for team building, people are getting creative. Peek is launching a platform that will offer teams and clients the opportunity to share experiences other than business meetings, and connect in a cooking or mixology class, wine tasting, chess competitions, and other fun activities. 

Almost a year since the lockdown, The New York Times reports that “There are hints that the economy has turned a corner: Retail sales jumped last month as the latest round of government aid began showing up in consumers’ bank accounts. New unemployment claims have declined from early January, though they remain high. Measures of business investment have picked up, a sign of confidence from corporate leaders.”

As reported by The New York Times, movie theaters in New York City will be permitted to open for the first time in nearly a year on March 5 at 25 percent of their maximum capacity, with no more than 50 people per screening – movie theaters in the rest of the State were permitted to open last October. Also, as reported in The New York Times, a public-private partnership, New York Arts Revival, was formed to bring back arts to life, offering pop-up performances spearheaded by the producers Scott Rudin and Jane Rosenthal, along with the New York State Council on the Arts. Since the pandemic started, employment in New York City’s arts sector has decreased by 66 percent.

As countries prepare to reopen their economies, the idea of introducing vaccine passports is seen by some as a way to facilitating traveling abroad and even gaining access to venues like restaurants and bars. Vaccination for vacation is an Internet meme that is catching on. There are however ethical concerns surrounding this issue, and it remains to be seen how it can be implemented.    

Lifestyle changes that are here to stay: remote work, online shopping, cashless payments, telehealth, digitized operations, and reduced contact. This article in The Harvard Gazette tackles the question on everybody’s mind: What will the new post-pandemic normal look like? Some experts think that we may have a clear idea by the end of the summer if we don’t experience another outbreak in September.