City’s Business Leaders Demand Action on Education Policies and Procurement before Legislative Session Wraps in June
NEW YORK, MAY 16, 2017 – The Partnership for New York City, which represents the city’s largest private sector employers, investors and leading entrepreneurs, called on the New York State Legislature to permanently extend mayoral control, lift the charter school cap and grant design-build contracting authority to New York City agencies before this legislative session concludes.
Mayoral control has restored the confidence of employers in the city’s K-12 public education system. Since mayoral control was first enacted in 2002, high school graduation rates have climbed to nearly 70 percent, from approximately 46 percent in 2005. There has also been a substantial reduction in the gap between city students and the rest of the state on other key performance metrics, including math and English proficiency, as well as average SAT scores.
Charter schools continue to provide a quality education option for students from school districts with high concentrations of poverty. If the current caps are not lifted, many New York City charters will have to turn away thousands of students. According to recent data, charter school students, 92 percent of whom are black and Hispanic, have achieved the highest English and math proficiency rates across several age groups.
“The highest priority of Partnership members, who employ more than a million New Yorkers, is an outstanding public education system that prepares students for jobs in the global economy,” said Kathryn Wylde, President and CEO of the Partnership for New York City. “We urge lawmakers to support permanent extension of mayoral control and to lift the charter school cap. Both measures contribute to expanded opportunities for the city’s public school students.”
Lawmakers must also move quickly before the end of the legislative session to modernize project procurement and delivery in New York City. Design-build is a contracting tool that has been adopted in 41 states. It allows public agencies to save money and time, while transferring construction risk to the private sector.“The city projects a savings of about $450 million on a pipeline of important projects,” said Kathryn Wylde. “Design-build allows public agencies to stretch their funds further and accomplish major projects with fewer delays and cost overruns.”
The Partnership Fund for New York City invested in New Lab to promote New York City’s digital manufacturing industry.
Did you know that last year New York City attracted as much fintech venture capital as all of Europe combined? That and more from the Partnership Fund for New York City CEO Maria Gotsch at the Innovate Finance Global Summit.
Recent FinTech Innovation Lab graduate AlphaPoint has provided a trading platform to the CME Group and The Royal Mint (TRM) for the first fully gold backed blockchain cryptocurrency. The coin is called “RMG” and is very similar to Bitcoin in technology. Users will be able to store the token themselves without the need for a bank or other custodian, they will also be able redeem the token for physically delivered gold. The new blockchain-based product is an entire trading eco-system for gold, providing speed, security as well as transparency of direct ownership.
Leaders of the downstate business and medical research communities are hailing a $620 million, ten-year plan to build a state-wide life sciences industry cluster that was put forward by Governor Cuomo and adopted by the legislature as part of the 2017-18 state budget this weekend. The Regional Economic Development Councils of Long Island, the Mid-Hudson Valley and New York City, as well as the Long Island Association, Partnership for New York City, and Business Council of Westchester, have been leading advocates for what they contend will be New York State’s next big industry, projected to add over $3 billion in annual economic activity and 24,000 new jobs.
The details of the plan include:
- $320 million for services and expenses, loans, and grants as well as costs associated with program administration for a life sciences initiative. Eligible costs may include, but are not be limited to lab space, equipment, technology, R&D, and venture capital investments in support of a comprehensive life sciences cluster strategy. $320 million includes $10 million annual cap on venture capital funding and $20 million for bioscience research labs and academic medical centers.
R&D Tax Credit
- For a company that employs ten or more persons during a taxable year, a fifteen percent credit for qualified R&D expenses can be claimed;
- For a company that employs less than ten persons during a taxable year, a twenty percent credit for qualified R&D expenses can be claimed;
- Companies have a $500,000 annual tax credit limit. There is a three-year limit per company.
- $10 million aggregate cap annually.
Kathryn Wylde, President and CEO of the Partnership for New York City said, “This forward-looking commitment to life sciences puts New York at the forefront of one of the world’s fastest growing industries, leveraging the enormous assets of our medical research institutions to generate new businesses and jobs.”
Kevin Law, President and CEO of the Long Island Association and Co-Chair of the LI REDC said, “New York has invested heavily in basic research over the years, but with Governor Cuomo’s new program, we are moving to support the growth of businesses that will generate a real return on that investment for the state and for our great academic medical centers and research institutions.”
Cheryl A. Moore, President and CEO of the New York Genome Center said, “This investment helps foster a more vibrant life science community in our region by creating jobs to attract talented researchers, entrepreneurs and innovators, and will allow the sector to ultimately gain insights leading to treatments, diagnostics and therapeutics for serious disease. This investment benefits all New Yorkers, both by making us more competitive, and by leading in life science innovation.”
Marsha Gordon, President and CEO of the Business Council of Westchester said, “The Mid-Hudson region has Regeneron, which is a model for what can be accomplished: a homegrown company that today has 4000 employees. We have a base to build on, but state incentives are necessary to expand and accelerate the growth of our commercial life sciences cluster.”
Winston Fisher, New York City REDC Co-Chair said, “The New York City region is looking forward to partnering with other regional councils to leverage our widely varied assets into a powerful cluster of life sciences activity that diversifies our economy and creates good jobs.”
Following the Partnership’s meeting with 50 of its members and President Trump, CEO Kathryn Wylde speaks with Stuart Varney of Fox Business on how government and the private sector can work together to modernize New York’s crumbling infrastructure.
The Partnership for New York City Holds Day of Meetings at the White House and Capitol Hill with Over 50 CEOs
WASHINGTON D.C., April 4, 2017—Today, over 50 CEOs, led by the Partnership for New York City, which represents the city’s business leaders and largest private sector employers, held a series of meetings with the President Trump, Cabinet Members and Senior White House Officials. Later today they will also meet with members of Congress.
The Partnership for New York City is in Washington D.C. on Tuesday, April 4, for meetings with President Trump and other federal officials. Over 50 CEOs representing New York’s largest private sector employers will participate in a series of conversations with Cabinet Members, Senior White House Officials and leaders of Congress to advocate for federal policies that promote the continued growth and economic vitality of New York City and our country’s other urban centers.
With an economic impact of over $740 billion annually, New York City stands apart as a hub for innovation and opportunity for Americans. Keeping the city at the forefront of global markets requires cooperation at every level of government. In addition to sharing their expertise, Partnership members are looking to learn more about lawmakers and White House goals for enhanced public and private collaboration. Specific topics on the agenda include plans to build bi-partisan support for modernizing infrastructure, improving workforce and job training programs, enhancing national and cyber security, and reforming tax and regulatory policies.
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New York City is in a fiscal position to forego some revenue in its 2017-18 budget to encourage business growth and job creation. It is time to scale back the Commercial Rent Tax, which is unique to this city. Manhattan commands the highest commercial rents in the country and its tenants are heavily taxed in many other ways. Requiring a business tenant in Manhattan to pay a 6% tax on its rent adds insult to injury. The Partnership for New York City joins other business organizations from across the city to urge the mayor and city council to provide CRT relief for some Manhattan employers in order to encourage their growth.
During the darkest days of America’s urban crisis, David foresaw New York’s renaissance. He dedicated himself to mobilizing the collective resources of business, government, labor, and the civic sector, to make this the great world city that it is today. He inspired generations of individual and corporate philanthropists to invest in the city and its great institutions. He worked to ensure that New York would remain an inclusive and open city, welcoming immigrants and sustaining a strong middle class. He led initiatives to build stronger neighborhoods, better schools, a vibrant public transportation system and a more diverse economy. His first job—as an assistant to Mayor LaGuardia—gave him a granular knowledge of the five boroughs that he applied throughout his life. The Partnership’s David Rockefeller Fellows Program, which prepares business executives to expand their civic contributions to New York, is a permanent tribute to his legacy. We also thank the New York State Senate for their resolution mourning the death of David Rockefeller; their warm remembrance further concretizes David Rockefeller matchless contribution to our city and state.
His imprint on the city will never be forgotten.