New Fiscal Benefits to NY Students

Education,

Putting a kid through college in America is not a fiscally simple feat. Nationwide, it is pricey. Looking at New York as one example, the City University of New York put out a table for how much it would cost a New York state resident living at home for tuition. For 2016-27, at State University of New York Systems (SUNY) it’s $6,470, the City University of New York (CUNY), $6,330 and a private college, $36,630.

Now though, that could all change. With a deal recently announced by Andrew Cuomo together with state legislative leaders, tuition at both CUNY AND SUNY could be free. For families with an annual income of up to $125,000 sending kids to community colleges and four-year colleges and universities, the plan – phased in over three years – would start this September beginning with those with incomes up to $100,000. Having been hailed as an “historic” move an estimated 940,000 New York families would be eligible for this program, once it is fully in system.

Although it appears that all would be rosy, there are some concerns – even for pro-free public college tuition advocates. The issue is the conditions. For one to receive free tuition, they have to provide proof that they are living and working in the state of New York for the same time period that they are getting the free tuition. The only loopholes in this are if recipients need to leave a) to finish their undergraduate education, b) enroll in graduate school or c) extreme hardship.

In addition, there are two other measures contained in the plan to enhance college affordability:

  1. $8 million for the promotion and distribution of free online educational materials for SUNY and CUNY students.
  2. A grant of up to $3,000 for students attending private NY colleges with such colleges matching the grants and freezing tuition while the grant is in place.

NY’s Labor Law Policies

News,

There are currently no laws/regulations in New York that deal with payroll debit cards and how to use them.  According to the NYDOL (New York Department of Labor), when used voluntarily, payroll debit cards are allowed. Last year a rule was established by the NYDOL for supplementary requirements to use direct deposit consent forms as well as payment by payroll debit card – a rule that was meant to become effective last month.

As such, for those employers paying their employees with payroll debit cards, they would not be able to use this for paying salaries without the employee being able to use at least one ATM offering withdrawal with no fees as well as a way of withdrawing the entire salary for each pay period or the remaining balance (without having to pay a fee).

However, a month before it was to become law, it was invalidated and revoked by the New York State Industrial Board of Appeal, reasoning that the NYDOL did not have the authority to take on the rule due to prohibitions and restrictions outside the Labor Code. The rules, argued the Board “go beyond regulation of the employment relationship and into the area of banking law, which is outside respondent’s competence and expertise in the regulation of employment and occupational safety and health.”

Furthermore, employers are not allowed to prevent employees from asking about/discussing their wages with a colleague.  Employers are allowed to restrict employees who have access to salary data of other employees, according to New York Labor Law §194(4).

Contained in a fact sheet provided by the NYDOL, on the matter of regulated speech between employees, it was written that: “[s]uch restrictions may not specifically reference the inquiry, discussion, and disclosure of wages.” Thus employers would be allowed to tell staff members to discuss matters directly related to their job duties during designated work periods, but this cannot be extended to salary discussions.

Impact of New York’s PFL

Employment, ,

For years, campaigns have been undertaken to fight for Paid Family Leave (PFL) Benefits throughout the nation.  New York finally has its own Paid Family Leave Benefits Law (article 9 of the Workers Compensation Law), that is to become effective January 1, 2018. As it is New Yorkers have been doing well over the years being one of very few states that force employers to give disability benefit coverage to workers for illness or injury (caused out of work time).

Now, New York’s PFL is making things even better. The result of Governor Cuomo’s New York State’s 2016-17 Budget, once in place, this will mean that anyone who has worked for at least 26 consecutive weeks (175 days for part-time workers) will be eligible for paid family leave benefits.  In addition, these individuals will have the right to a leave of absence and guaranteed reinstatement.  This would also be the case for those who do not come under the protection of the Family and Medical Leave Act.

For employers this law will enforce a review of family and medical leave policies, benefits, agreements, etc. in an attempt to ensure full compliance.

 

Family-Owned NY Businesses

Economy, , , ,

According to Westfair Communications correspondent Peter Katz, “family-owned businesses form the foundation of the U.S. economy.” Statistically this means that around 64 percent of America’s GDP comes from these businesses with 36 percent of all employees working in the family businesses.  In addition, for the economy, 40 to 46 percent of all annual sales come from family-owned businesses.

But how successful are these family-run businesses?  According to recent data from the Cambridge Family Enterprise Group, only 16 percent of businesses are successfully transmitted from a founder to the next generation.  The numbers continue to diminish through each generation, reaching a mere 2 percent by the fourth generation.

But there is some good news for New Yorkers, as was seen at the 2017 award ceremony for Westchester and Fairfield counties’ family businesses.  According to Dee DelBello, Westfair Communications Publisher, these counties comprise “the most diverse, successful and community-minded family businesses…Family-owned businesses are the backbone of our country and its economy, and that’s just as true for Westchester and Fairfield counties.”

One of the award winners was Mamaroneck’s Walter’s Hot Dog Stand.  Recipient Christine Warrington accepted the award together with her children.  She is a third generation family member to run the company which was launched in 1919 by her grandparents.  Today, her three children aged 39, 31 and 27 are all working to “continue the legacy of Walter’s.”

if so much of America’s economy is dependent on family-run businesses, wouldn’t it make sense for more people to at least give it a try?

Bolstering NYC Businesses

Economy, , , ,

Businesses in New York are getting boosts from a few different industries.  Two which are of particular note are the NYC Love Your Local and the NYC Tech Talent Pipeline.

A new approach has been put in place by the Department of Small Business Services with its establishment of the NYC Love Your Local. Created in order to “celebrate and promote small businesses throughout the five boroughs,” New Yorkers are being encouraged to share their favorite businesses (independent and non-franchised). Thereafter these will be included in an online interactive map.  As Gregg Bishop, commissioner for the Department of Small Business services pointed out, “

“Independent, small businesses are the backbone of our neighborhoods, and the ‘NYC Love Your Local’ initiative recognizes and supports their vital role in the fabric of New York City. New York City is full of unique neighborhoods that are given character by local merchants and entrepreneurs. New Yorkers should share their favorite neighborhood business and be sure to share their love.”

It is hoped that this initiative will creatively encourage people to make purchases in local stores, which in turn will provide more access to capital for these businesses and improve their services.

Mayor de Blasio’s NYC Tech Talent Pipeline is meanwhile seeing an investment of $1 million into the program that brings together students and tech jobs.  While de Blasio set this up three years ago (and has over that time brought together educational institutes with NYC’s booming technology industry), now new tech

apprenticeships and internships  are being offered at top level firms such as Accenture, IBM and Verizon.

Employment Gains in New York

Employment, , , ,

Thanks to Spotify an additional 1,000 jobs will soon be available to New Yorkers.  With the upcoming move of company headquarters to Manhattan at 4 World Trade Center from its current location in Sweden, in early next year and the “World Trade Center Rent Reduction Program rent credits” being bestowed on the company from the Empire State Development (ESD), substantial growth for the firm is anticipated.

Snapchat and Etsy have also received such credits from ESD.  All of this is an effort to keep talent in New York and such tax incentives have helped to create nearly 2,000 jobs while retaining more than 1,500 in the state of New York.

Indeed, looking at figures from the end of last year we see that Rochester had some impressive gains in the job market.  Both the non-farm and private sector encountered a spike (4,400 and 4,200 respectively) in employment while the region’s overall unemployment rate remained static at 4.7 percent from 2015. And then the Solar foundation reported a record high level of employment with 260,077 workers in late 2016 (with a growth of at least 20 percent for four consecutive years).

Finally according to a recent article by PYMNTS, “the economy is showing continued growth in everything from consumer spending and job growth to manufacturing,” based on data from a report in The New York Times.  Retail sales increased 0.4 percent in January (0.8 percent when auto sales are excluded), and the Consumer Price Index increased by 0.6 percent.

So there is room for optimism for New Yorkers when it comes to the economy.  Post-election panic is perhaps not as necessary as it may have been anticipated.

Moving Manufacturing Back to NYC

News, , , , , , , , , , ,

Historically, New York was the place to be when it came to the making of clothing. And given that NYC is still home to one of the world’s most prestigious fashion centers (with the Garment Center at its heart, in Manhattan) wouldn’t it make sense for the garment-making to take place there as well?  Because current figures are suggesting that is not the case.  For example, a Queen’s College Census Data Report found that in 2015, around 23,000 employees over 16 worked making apparel, accessories and finished textile products.  But if you look back to 1950 that figure was 323,669.  By the year 2000 that had dropped to 59,049 but now it’s dropping even more.

Given this, over the last few years, the city of New York has undertaken a variety of initiatives to change the balance. One example of this is the partnership that was formed between the Council of Fashion Designers of America and the NYCEDC (New York’s main City’s main generator for economic development).  Launched in 2013 with $6m, this public-private partnership program was established to bolster local fashion manufacturing and endorse inclusive economic growth throughout the City’s fashion sector which was set up to “support local fashion manufacturing and promote inclusive economic growth.”

And it has done it.  It has given 19 companies grants totaling $1.8 million to pay for technologies that help cut costs and maximize output. Some of the recipients since 2013 have included: Design Incubator, Dye-Namix, Dynotex, New York Embroidery Studio, Oomaru Seisakusho 2, Rainbow Leather, Sunrise Studio, Create-a-Marker, High Production, In Style USA and Martin Greenfield Clothiers.

Federal Budget Boost?

Budget, ,

Could there finally be some good news for New York’s federal budget?  Now, that is about to change.  According to news from the Congressional Budget Office, after a staggering 7 years of declines, around $10 trillion will be added over the next decade.

An anticipated deficit shrink is due this year and 2018 before an increase in 2019 and thereafter.  From 2018 to 2027 there would be a cumulative deficit totaling $9.4 trillion and by 2023 that will reach $1 trillion with a projected $1.4 trillion deficit, equaling around 5 percent of the economy.

During a recession, a deficit is actually quite helpful.  But given that the US economy is currently close to full employment, economists advise deficits to be kept under 3 percent.  But central New York is not doing as well as the rest of the nation.  According to the yearly economic forecast given by CenterState’s Economic Forecast Breakfast, the economy in NYC is substantially behind its other counterparts.  M&T Bank regional economist, Gary Keith believes that the outlook for this year is similar for last year. There was an expansion with the economy last year but the growth was not that what it should have been and not like other parts of the country or upstate.

NY: The Economics of Infrastructure

Infrastructure, ,

$2 billion may seem like a lot for infrastructure (and it is) but given that New York is in some serious need of an upgrade for its water and sewer systems, that is hardly anything.  Indeed, experts believe that it is likely to cost around $80 billion.

This proposal by Gov. Cuomo is in addition  to the $200 million that was approved in 2016 by lawmakers for water projects in the region.  Despite this, the proposal is garnering support from both parties due to the fact that many of the water systems have been wearing out for some time already (one example being that almost 1,500 water main breaks were encountered by The Erie County Water Authority in 2015). Indeed, it has been estimated that 20 percent of NYC’s treated water which goes into municipal pipes encounters a leak before it gets to the faucet which is becoming an increasingly problematic situation. Maintenance and repair is crucial now before the situation worsens.

One problem is however, as Steven Cohen, Executive Director of Columbia University’s Earth Institute asks:

“The structure of the public-private deal or partnership is critical, but again, the central issue remains, who pays? People resist paying for resources that once were free. Before this country became modern and urban, many people were able to get water for free from their own wells. They managed their waste in septic fields and compost heaps, and the occasional garbage fire. Now they pay for water, sewage treatment and waste removal. They used to get their TV for free with antennas, now they pay monthly Internet and cable bills. Life has become more complicated and more expensive and our incomes have not kept pace with the increased cost of everything. It’s easy to understand why people resist paying for the modernization of infrastructure. But it can’t be avoided for much longer. A progressive fee system for privatized infrastructure needs to be considered as part of the way to help the working poor and people on fixed incomes to bear the cost of infrastructure upgrades.”

He answers: “The issue is how payment for the infrastructure is set up and how the government maintains control to ensure accountability if the private firm does a lousy job.”

Let’s hope the bill is sorted out in time for New Yorkers to get safe water in their homes.

New York: Good Industries for Employment

Employment, , , ,

What are the best jobs to get in New York?  There are a variety of industries that seem to have job openings with good money.  We look at some of them here.

First and foremost, construction.  It always seems to be the place where there are many openings and indeed just last year, there were 147,000 jobs posted with developers looking at around 2 year delays for certain projects as there are simply not enough workers! So for those looking to retrain, construction is an area that should be considered.  And salaries are great too.  For example, members of the International Union of Operating Engineers can earn up to around $500,000 annually!  Also in the industry in demand are site safety managers (who need a decade of experience before being licensed) since there are not enough right now.  They get really high salaries too.

Moving on to the hospitality industry it was found that New Yorkers can really make a ton of money in this.  In 2017, in NYC alone it is expected that 61.8 million will visit the area, most of whom will need accommodation.  That means: bellboys, housekeepers, managers, chefs, waitresses, concierge and everything in between.  Indeed as Hospitality Talent Scouts President Frank Speranza pointed out:  “The demand for general managers [and] directors of finance, as well as food and beverage managers is incredibly high.”

For those in hi-tech there is a spot in New York for work too.  NY Tech Alliance President Erik Grimmelmann said that some of the smaller tech firms like Catchpoint Systems, Contently and xAD are often seeking talent and that the majority of people who showcase their demos at the NY Tech Meetup announces they are hiring.

Other major industries for good work include: management consultants, media and marketing and insightful data workers.

f you’re up to date on the latest technologies, you won’t have to look far to find a job, according to Erik Grimmelmann, president of the NY Tech Alliance. While younger tech firms don’t typically hire hundreds of workers at once, the city is home to more than 1,000 of them, most of which are seeking talent. Among them are Catchpoint Systems, Contently and xAD. Grimmelmann says that nearly everyone who takes the stage to showcase their demos at the monthly sold-out NY Tech Meetup announces that they’re hiring.

Management consultants are in demand. Media and marketing, insightful data workers