Despite uncertainties about projected revenue shortfalls and the effects of the ongoing economic downturn, New York State must continue to invest in high-tech research and development last year, Senate Majority Leader Joseph Bruno said.
For this reason, the Senate remains committed to a strong state investment in R&D through its Gen*NY*sis program, Bruno added in a Nov. 28 speech before leaders of the New York State Economic Development Council (NYSEDC).
New York State is going to do what it takes to remain competitive, Bruno told NYSEDC.
"Over the past seven years we've reduced taxes more than every other state and made New York State more economically competitive with the nation and the world," Bruno said. "As we look to next year's budget, it is critically important that we continue doing what works -- and continue to invest in tax cuts and job creation, and programs like Gen*NY*sis to expand the biotechnology industry in New York State."
The Senate first unveiled Gen*NY*sis last December, calling for a $500 million combined public and private investment in biotechnology research and development at universities, corporate R&D labs, and other research institutions. The program has the goal of fostering economic development in the emerging biotechnology sector.
In addition, Governor Pataki last year proposed a comparable state investment in research and development through the "Centers of Excellence" program. And The Business Council urged lawmakers to keep pace with other states by investing $1 billion over five years in high-tech research and development collaborations.
In October, lawmakers made a modest initial investment in high-tech R&D part of the final part of the state's 2001 budget. That agreement included a total of $10 million for Gen*NY*sis, the Centers of Excellence program, and economic development initiatives advanced by the Assembly.
Hopes for a more aggressive initial investment were dampened by the economic downturn, a resultant decline in projected state revenues, and concerns about the lingering effects of the downturn and the Sept. 11 atrocity.
Bruno did not estimate how much the state would invest next year, citing uncertainties about revenues, about federal aid to ease the effects of the terrorist attacks, and other factors.
"The financial challenge facing our state is enormous," Bruno said. "The only good news is that New York is in a strong position to deal with this loss because of what we have done over the past seven years," including creation of reserve funds topping $5 billion that could be used to help weather the downturn.