Albany's "Big Ugly" Looks Like Big Trouble For New York's Small Businesses

Date: June 17, 2019

End-of-session negotiations include new taxes, more mandates, and little relief for small biz.

NEWS RELEASE

ALBANY, June 17, 2019 — NFIB, the state’s leading small business advocacy association representing over 10,000 thousand small and independent businesses across every community in the state, expressed disdain for the process and content of the negotiations surrounding Albany’s legislative “Big Ugly,” a collection of unrelated issues negotiated against each other to expedite passage and limit public review.

 

“If reports are correct, the issues currently under discussion could make 2019’s “Big Ugly” the most hideous ever for small businesses. Being considered are measures that will drastically increase the cost and availability of energy, halt development and construction, threaten the viability of family farms, and expose small businesses to even more frivolous lawsuits,” said Greg Biryla, NFIB’s New York state director.

Some of the issues under active negotiation by the New York State Senate, Assembly, and Executive in the final days of the legislative session include:

  • The expansion of New York’s prevailing wage mandate to private construction projects that receive any public support including programs utilized by small businesses like Small Business Administration 504 Loans, Historic Rehabilitation Tax Credits, manufacturing Investment Tax Credits, local Industrial Development Agency benefits, and others. These programs are used as an offset New York’s high cost of doing business and allow small businesses to finance their growth. A report from the Empire Center and the Center for Governmental Research estimates that prevailing wage increases the cost of construction by as much as 25 percent.
  • The Climate and Community Protection Act will likely add billions of dollars in new energy costs on all ratepayers, including small businesses. The proposal seeks to outlaw carbon-based energy across the economy, including engines used in cars, planes, tractors, and construction equipment, and appliances like gas furnaces that heat homes and businesses. The CCPA’s sponsor’s memo states the legislation’s fiscal impact is “to be determined.” One estimate places the average cost to retrofit a home into compliance to be nearly $60,000.
  • The Farmworker Fair Labor Practices Act places factory-style workplace mandates on farms and agri-businesses including mandatory overtime and collective bargaining rights. This legislation would add an estimated $299 million in increased labor costs for farms across New York according to a report from Farm Credit East and ignores the inherent seasonal nature of farm work.
  • Adding new, ambiguous, and subjective terms to the state’s General Business Law will expose small business to even more frivolous lawsuits and higher liability insurance costs. The legislation adds “unfair” business practices as actionable, increasing the damages that can be sought.

“Any one of these issues places unprecedented new cost burdens on a number of industries and types of small businesses. Combined, they create an existential threat to New York’s entire small business economy,” added Biryla.

Contact:
Greg Biryla
NFIB’s New York State Director
[email protected]

Related Content: Small Business News | New York

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