By Hank Russell
A group of elected officials spoke at a panel discussion during the Hauppauge Industrial Association of Long Island’s 47th Annual Meeting and Legislative Program at the Radisson Hotel in Hauppauge on January 17 where the main topic focused on whether businesses can stay in New York State — namely, Long Island. The guests told those in attendance what was needed to bring — and retain — businesses in the region.
The guest speaker, U.S. Representative Nick LaLota (R-Rocky Point), emphasized how taxes are crushing residents and business owners, forcing them to move out of New York. He also called on Governor Kathy Hochul to reduce taxes for Long Islanders.
“We have the dubious distinction of having the highest state, local and income taxes and the highest rate of outmigration,” he said. “More people leave New York State than any other state in the country. I think our businesses suffer from a lot of that burden.”
Suffolk County Presiding Officer Kevin McCaffrey (R-Lindenhurst) added that people leave Long Island “not because they don’t like the beaches, but because they can’t afford to live here.”
While he called on the Democrat-controlled state Legislature to help, LaLaota added that the Republicans in Congress should “do our part” to lower the tax burden. That includes raising the SALT (state and local taxes) deduction. LaLota said he may have to battle his own party to increase the deduction.
“Some people in the right wing of my party think that SALT is nothing more than a largesse to subsidize blue states like ours,” he said. “Some on the left think it’s welfare for millionaires. I don’t think so.”
When asked what they are doing to attract new businesses in their region, Islip Town Supervisor Angie Carpenter, a former business owner, said her administration has worked hard to welcome new businesses, but she emphasized that keeping existing businesses is also important.
“We should be there to help and not get in the way,” she said. “That’s what government should do: not get in the way.”
Moving the terminal at Islip MacArthur Airport closer to the Ronkonkoma train station is “so vital, not just to the airport and the town, but to the region as a whole,” Carpenter said. “It’s a tremendous opportunity for economic generation.” In addition, she said, the airport offers high-paying jobs that would keep younger talent on Long Island, thereby reversing the outmigration trend.
When asked what Suffolk is doing to support the business community, Suffolk County Executive Ed Romaine had this to say: “We’re working with our legislature and our towns to make sure that we have a business-friendly atmosphere.”
To accomplish this, Romaine said the county has to invest more in infrastructure. “If you invest in infrastructure, you can improve the productivity of any community,” he said. “Investing in our infrastructure is one of our most important things.” He added that the investments are not just for sewers, but for roads and the railway system.
The biggest economic engine, he said, is sewers. “Sewers are not just going to have an environmental impact, they are going to have an economic impact,” Romaine said.
Like Romaine, Huntington Town Supervisor Ed Smyth said sewers must be the top priority for any proposed development, as opposed to “glossy decks” of previous projects during the pitch. “In Huntington, if you have a pitch [for a new development] and you don’t start with sewers or water, right away, your credibility is going off a cliff because you’re not taking it seriously.” he said. “Sewers are everything on Long Island. Everything.”
If the project gets rejected, “You’re gonna hear a no very quickly,” Smyth said, “You’re not going to be spinning your wheels for a year or two … We will tell you immediately that this is not going to happen. … Advocating for sewers is the best thing [businesses] can do. … If you’re a developer and you don’t focus on sewers, you’re focusing on the wrong thing.”
Romaine said he will “reimagine” a future for Suffolk. “Yes, we are not in a state that is not as competitive as other states, but we’re going to use the power of local government to try to make it more competitive.” He said that Long Island can be “the most powerful economic engine” next to New York City, “in this state with the right investment. Put the money in, you’ll get results; you’ll drive the economy.”
McCaffrey also said working with governments at every level is crucial, especially with state government. “It’s a partnership,” he said. “[But] we need the state’s help to help get our agenda going, and move things forward that we know is important to us.”
He mentioned the Suffolk County Department of Economic Development and the Suffolk Industrial Development Agency (IDA) that businesses can use as “resources.” “Those are the things that we can do to make sure that businesses have an outlet that they can go to and speak to and say, ‘Look I want to stay on Long Island. How can I do that?’” he said.
After the event, Romaine said he would also work with the IDA and present budgets within the tax cap because “the power to tax is the power to destroy. We want to maintain [taxes] as low as possible.”
Romaine said he supported President Biden’s $1.1 billion infrastructure bill and funding from the Environmental Bond Act, but the county never received one dime from either program. “I’d like to see some of that money, Romaine said. “I haven’t seen any of that money. “Where’s our share of that money?”
Carpenter agreed with Romaine that Long Island should fight for “their fair share” of funding. If the funding is not there for these projects, she said, then there will be an outmigration on Long Island and “the state is doomed.”
“We need to lead, we need to speak for this island because, believe it or not, our future is in doubt,” Romaine said. “And we’re going to make sure that that doubt is erased and we lead with job growth, by supporting businesses, and governmental policies that favor [the] business community. So, we have a lot to do.”