2001 Yellow Book
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URBAN DEVELOPMENT CORPORATION

                           Adjusted        Executive
                        Appropriation       Request                    Percent
                           2000-01          2001-02        Change       Change

AGENCY SUMMARY
  Community Projects Fund  23,021,000               0    (23,021,000)  -100.00%
  General Fund            142,837,100     143,604,100    767,000          0.54%
  Capital Projects Fund    65,000,000     100,000,000     35,000,000     53.85%
  Total for
     AGENCY SUMMARY:      230,858,100     243,604,100     12,746,000      5.52%


AID TO LOCALITIES
  Community Projects Fund  23,021,000               0    (23,021,000)  -100.00%
  General Fund            142,837,100     143,604,100        767,000      0.54%
  Total for
     AID TO LOCALITIES:   165,858,100     143,604,100    (22,254,000)   -13.42%

Economic Development
  General Fund            142,833,000     143,600,000        767,000      0.54%
  Total for Program:      142,833,000     143,600,000        767,000      0.54%

Community Projects
  Community Projects Fund  23,021,000               0    (23,021,000)  -100.00%
  Total for Program:       23,021,000               0    (23,021,000)  -100.00%

Payments to Municipalities
  General Fund                  4,100           4,100              0      0.00%
  Total for Program:            4,100           4,100              0      0.00%

CAPITAL PROJECTS
  Capital Projects Fund    65,000,000     100,000,000     35,000,000     53.85%
  Total for
     CAPITAL PROJECTS:     65,000,000     100,000,000     35,000,000     53.85%

Economic Development
  Capital Projects Fund    65,000,000     100,000,000     35,000,000     53.85%
  Total for Program:       65,000,000     100,000,000     35,000,000     53.85%


                          BUDGET HIGHLIGHTS
                   (Executive Budget: pp. 205-207)

The Urban Development Corporation (UDC) is currently doing business as the 
Empire State Development Corporation (ESDC). The mission of the UDC is to 
promote economic and real estate development by providing financial assistance
to local governments, businesses and not-for-profit corporations engaged in
economic development activities.  In addition, the Corporation is engaged in 
housing portfolio maintenance and provides State facility financing for the 
construction and modernization of State correctional facilities, as well as 
other special projects.

The Urban Development Corporation is included in the Transportation, Economic 
Development and Environmental Conservation appropriation bill.

Aid to Localities

The Executive recommends a General Fund appropriation of $143,604,100, a net 
increase of $767,000 over State Fiscal Year (SFY) 2000-01.

The Executive eliminates $11,000,000 in non-recurring funding for the following 
programs:

  --Biotechnology-Biomedical Initiatives                           $10,000,000
  --Governor's Island Redevelopment                                 $1,000,000

In addition, the Governor eliminates $29,833,000 in funding for the following 
legislative initiatives:

  --Griffiss Air Force Base                                         $3,000,000
  --Plattsburgh Air Force Base                                      $2,500,000
  --Seneca Army Depot                                                 $300,000
  --Niagara Falls Air Force Base                                      $200,000
  --Central New York Smart Building Project                           $500,000
  --St. John Fisher Science Center                                    $500,000
  --North Country Information Technology Development                  $250,000
  --Saratoga Economic Development Corporation                       $1,000,000
  --Town of Hempstead Downtown Revitalization Program                 $250,000
  --Ulster County Development Corporation,                            $200,000
  --Chemung County Gas Line Project                                   $500,000
  --Economic Development Initiatives                                $3,833,000
  --Economic Development Initiatives                               $19,000,000
  --American Axle-Tonawanda Forge                                   $1,000,000
  --Centers for Remanufacturing                                     $1,000,000
  --Community Development Financial Institutions                      $400,000
  --Delphi-Rochester United Auto Workers                              $150,000
  --Griffiss Air Force Base Redevelopment                             $900,000
  --Watervliet Arsenal Revitalization                                 $350,000

The Executive maintains prior year funding for the Empire State Economic 
Development Fund and Jobs Now programs at appropriation levels of $37,000,000 
and $42,000,000, respectively.

The Executive also recommends a $23,021,000 decrease through the elimination of 
various economic development projects, community projects grants and local 
initiatives.

The Governor proposes $36,500,000 for a new High Technology Development program. 
This reflects the first year costs for a five-year program.

The Executive proposes $5,100,000 for redevelopment efforts in Niagara Falls.

Funding for the following programs are appropriated at the prior year levels:

  --Urban and Community and Development                             $3,500,000
  --Minority and Women Owned Business Development
      and Lending program                                           $3,500,000
  --The Federal Empowerment Zone program                           $10,000,000
  --The Air Force Base Redevelopment                                $6,000,000

Capital Projects

The Governor proposes $100,000,000 for a new high technology capital program.
No statutory language for this program is included in the proposed Executive budget.

Article VII Proposals

The Executive recommends language authorizing the Dormitory Authority (DA) to 
provide $1,200,000 to support the operation of the Cornell Theory Center 
supercomputer.

The Executive proposes to reduce the authorized Community Enhancement Facilities 
Assistance Program (CEFAP) bonding by $81,000,000.  The bill redirects 
$60,000,000 in bonding authority from the CEFAP program to the Urban Development 
Corporation to support the High Technology Program.  In addition, the Executive 
authorizes the use of $21,500,000 from the Debt Reduction Reserve Fund in lieu 
of bonding authority to finance a portion of the CEFAP program.

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