CHENANGO COUNTY – High energy costs, property taxes and the cost of living are all reasons why economic development in Upstate New York, including Chenango County, may not be growing in proportion to the national rate.
A study released on Thursday by the Business Council of New York compared economic development in the counties and regions of New York to the national rate of growth. The results showed that Chenango County, and several surrounding counties including Broome, Madison, Cortland and Otsego, all received grades of F, and Upstate New York as a whole received an F as well.
“This index shows just how badly New York’s economy has performed compared to the nation, and it confirms that Upstate New York is locked in a profound economic crisis,” said Business Council President Kenneth Adams in a press release. “Through a long period that includes both ups and downs in the national economy, New York’s economic performance has been awful.”
Assemblyman Cliff Crouch explained that the results of the study did not come as a surprise, but actions are being taken to give Upstate New York an edge in the business market. Some steps have already been taken, such as capping the cost of Medicaid for counties, and other steps are yet to come, and could include capping the percentage of school tax increases. According to Crouch, similar action was taken by the state of Massachusetts approximately 15 years ago, and the difference in school budgets was made up by the state. (As a whole, the state of Massachusetts scored a C, compared to an overall score of D for New York State.)
Crouch also pointed to the high cost of energy as a contributor to Upstate’s lacking economic development. “We need to decrease energy costs. Alternative energy is the solution,” Crouch said. Other contributing factors include the cost of insurance and workers compensation. “New York State has the highest worker’s compensation costs and pays out the least money to the worker,” Crouch said, pointing out that costs of worker’s comp programs in bordering states like Pennsylvania and Massachusetts are much lower.
“Nothing happens overnight. Even with reform, it might take three to five years before we really saw businesses looking at New York for where to site their business.”
For Chenango County, Crouch identified other possible improvements including the possibility of upgrading the route 12 corridor and possible options for the rail line. “Twelve years ago, when I was Chairman of the Board (of Supervisors), we were looking at the deficiency of Route 12. Dick Decker (North Norwich Town Supervisor) has done a great job keeping the issue active. The upgrade to 12 has to be done.”
Crouch also outlined some possibilities for Chenango County’s rail line. “The rail service is still being evaluated,” Crouch said. The rail line, from Chenango Forks to Sherburne, has been non-operational since flooding in June of 2006 damaged a portion of the line. “There is potential for making an inland port for continuous freight. Instead of sending everything into New York City, it would make sense for a port to be located near the Binghamton area.” Crouch explained that the rail possibility would create an economic hub in the Upstate area, but said currently the idea is only in the discussion phase. If it were pursued, the project would probably be 10 to 15 years down the road.
While the results of the study seem bleak, Crouch pointed out the positives that have occurred in the area. “You also have to look at the positive side. We have had growth. We may not have stacked up as well as other areas, but we’re doing better than we have in the past,” he said.