NYS… “Open For Business” or Putting Us All Out Of Business?

Back in August of last year Governor Andrew Cuomo announced his marketing initiative that he called “New York Open for Business”.  This initiative was introduced as a way to bring business to the state, to project a warm and welcoming image to businesses worldwide, encouraging them to come to New York State and put down roots.  Cuomo said “we must emphasize the many advantages New York has to offer, including our central location, our wealth of resources, our unequalled network of colleges and universities, and our diverse, innovative, educated and hard-working residents.”  Some of the efforts what were listed at that time were balancing the state budget with no new taxes, and a local property tax cap.  It was also publicized at that time that the “effort will space several years.  The initial campaign is expected to cost at least $10 million and as high as $50 million if deemed necessary.”

That brings us to May of this year, when another announcement was made by the Cuomo administration announcing a “modest increase” in toll prices for big trucks, and possibly more for other drivers as well.  This “modest” increase they are proposing is far from modest.  Raising toll prices 45% will have a huge impact on New York State, expecially after a 25% increase back in 2010.  Many trucking companies and owner operators will not be able to incur the extra drain on their finances, and will have to search for ways to compensate, either by using roads other than the thruway, or increasing their pricing as well.

The irony here is apparent, just a year ago New York State was opening its arms to welcome in businesses, portraying the image that trade was welcomed here, and would flourish and grow here.  The initial campaign that was said to cost anywhere from $10 to $50 million dollars is actually accomplishing what? Cuomo’s own website listed some of the goals of his initiative:

Reduce Business Cost Drivers. Reduce New York’s high business cost drivers by completing the reforms to Workers Compensation, making it possible to achieve 20 percent savings in Workers Compensation expenses; and, enacting a permanent Power for Jobs program that reserves the benefits of low cost power for the Upstate manufacturers who need it to be competitive.

Both of these proposals by Cuomo seemingly cancel each other out, how can you reduce business costs in NYS while increasing the cost of transporting goods and services, as well as the eventual increase in the price of goods in general?  Terpening Trucking said that the increase would cost them around $6,000 more a month, and their safety director who is also an officer with the New York Motor Truck Association said that previous cut backs have had to be absorbed by salaries, benefits, parts supplies and more but that they cannot handle such a dramatic toll increase.

Whenever something like the toll increase for the NYS Thruway happens, the question always arises of where the money is going, and what it is being used for.  Thruway Executive Director Thomas Madison made one thing known, the funds from the toll increase will NOT be used towards the replacement of the Tappan Zee Bridge, it will “be addressed with separate financing”.  Madison also said that the major increase in tolls will help repair damage caused by big trucks.

Kendra L. Adams is the Executive Director of the New York State Motor Truck Association and she calls this increase “outrageous”.  She also pointed out that we will be “jeopardizing” small companies with already small profit margins, and that these increases will ultimately trickle down to the consumer.  The Vice Chairman of NYSMTA suggests finding internal savings within the Thruway Authority, including separating it from the Canal Corporation.

In the end we will all suffer as consumers will inevitably feel the impact at the pump, at the grocery store, clothing stores, and pretty much anywhere items can be purchased.