Cuomo’s failing Start-Up NY won’t get his desired rebranding
The state Legislature won’t let Gov. Cuomo change the name of his much-maligned Start-Up NY economic-development program, which critics have lambasted as an embarrassing failure.
The governor earlier this year announced he was rebranding the initiative Excelsior Business Program, in much the same way that Time Warner Cable became Spectrum following a merger.
But, knowing there is something in a name, Republican and Democratic legislators blocked him.
“Our intention was to close down Start-Up NY,” said Scott Reif, spokesman for Senate Majority Leader John Flanagan (R-Smithtown). “It hasn’t been successful.”
As a compromise, the Senate GOP agreed to let the program continue for two years — but only under its original name.
The Assembly wasn’t a fan of the program, complaining about a $53 million marketing campaign.
“The state had already invested heavily in advertising so it didn’t make a lot of sense in our view,” said Michael Whyland, spokesman for Assembly Speaker Carl Heastie.
Start-Up NY provides 10 years of tax relief to businesses that launch or relocate to designated areas in and around college campuses.
But despite its name, the program has been slow to start. In its first two years, it created a mere 408 jobs.
Last year, 757 more jobs were added, bringing the total to 1,135, according a report from the Empire State Development Corp.
The 212 businesses in the program have pledged to produce 4,403 jobs over five years.
That would require 3,268 new jobs over two years — far exceeding the pace for the first three years.
Legislators were dubious about the name change as soon as Cuomo proposed it.
“If Start-Up NY is such a success, why are we abandoning [the name]?” Assemblyman Steve McLaughlin (R-Troy) asked at a hearing in February.
Cuomo’s chief economic development adviser on Monday defended the program and down-played the Legislature’s rebuff
“It’s much ado about nothing,” said Empire State Development Corp. CEO Howard Zemsky. “You can call the program whatever you want.”
He said the name change was intended to align with other economic development programs also called Excelsior, the state motto.
What’s important, Zemsky said, is that it has shattered the perception that New York is anti-business.
“It has successfully changed minds,” he said.