>>>
JUST AHEAD ON "NEED TO
KNOW," OTHER THAN DRIVING ON
THE 590 AND 490, WHAT DO YOU
SEE LESS OF THIS YEAR?
WELL, CONSTRUCTION.
WE TAKE A LOOK AT THE EFFECTS
AS ROCHESTER'S CONSTRUCTION
LABORERS ARE SEEING LESS WORK.
ALSO, WE'LL DISCUSS MONROE
COUNTY'S TENUOUS FISCAL
SITUATION AS COUNTY EXECUTIVE
JACK DOYLE GETS READY TO
ANNOUNCE PLANS FOR BALANCING
THE BOOKS.
ELLEN ROSEN IS HERE FOR THIS
WEEK'S EDITION OF THE BUSINESS
SECTION WITH THE DEMOCRAT AND
CHRONICLE.
IT'S ALL NEXT ON "NEED TO
KNOW."
>>> THE FIRST FIVE MONTHS THE
CONSTRUCTION INDUSTRY HAS BEEN
DOWN 15, 20, 30%.
>> THIS IS "NEED TO KNOW," THE
ROCHESTER AREA'S ONLY IN DEPTH
NEWS PROGRAM.
"NEED TO KNOW" IS A PRODUCTION
OF WXXI NEWS AND PUBLIC
AFFAIRS, COVERING ISSUES,
POLITICS, EDUCATION, AND
CURRENT EVENTS.
>> "NEED TO KNOW" IS MADE
POSSIBLE BY THE DAISY MARQUIS
JONES FOUNDATION, BY DORSEL LEXUS
AND THROUGH THE SUPPORT
OF VIEWERS LIKE YOU.
>>> THANKS FOR JOINING US.
I'M GARY WALKER.
WE'LL GET TO WHY ROCHESTER
ISN'T BUILDING IN JUST A
MOMENT.
BUT FIRST, THE ECONOMY HAS BEEN
IN THE HEADLINES FOR WEEKS
WHILE CORPORATE SCANDALS
AND THE JUMPY STOCK MARKET HAVE
BEEN ON THE FOREFRONT OF THE
NEWS.
THE SLUMPING ECONOMY HAS ALSO
BEEN TROUBLE FOR THE BUDGETS OF
LOCAL GOVERNMENT.
MONROE COUNTY HAS PROJECTED A
$23 MILLION DEFICIT AFTER YEARS
OF SURPLUSES.
COUNTY EXECUTIVE JACK DOYLE
SAYS HE'S READY TO TAKE ACTION.
JOINING US IN STUDIO TO DISCUSS
THIS IS AM-1370 MARK GIARDINA.
THANKS FOR JOINING US.
>> THANKS, GARY.
>> LET'S GET RIGHT TO IT.
DOES THE COUNTY EXECUTIVE TAKEN
STEPS ALREADY, OR IS THERE
PLANS TO COME?
>> THERE IS A PLAN TO COME, BUT
HE HAS TAKEN SOME STEPS.
ONE OF THEM IS A HIRING FREEZE.
THE OTHER ONE IS HE'S HOPING
THAT ENOUGH COUNTY WORKERS WILL
TAKE ADVANTAGE OF AN EARLY
RETIREMENT INCENTIVE.
THAT WAY THERE WON'T BE AS MANY
PEOPLE LAID OFF AS EXPECTED.
>> SO LAYOFFS ARE EXPECTED?
>> WELL, SOME PEOPLE ARE SAYING
THAT.
AND THAT SEEMS TO BE WHAT THE
INTERPRETATION IS.
BUT DOYLE HAS NOT MENTIONED
THAT PUBLICLY YET.
HE WILL ADDRESS THAT IN THE
NEAR FUTURE.
>> I KNOW THE PENNY SALES TAX
INCREASE CREATED SURPLUSES FOR
YEARS.
THAT SEEMS TO HAVE DRIED UP
RIGHT NOW.
I KNOW POLITICALLY GOING INTO
NEXT YEAR RUNNING FOR OFFICE, I
DON'T THINK HE WANTS TO BREAK
HIS PLEDGE OF NOT RAISING
PROPERTY TAXES, SO WHERE'S THE
MONEY GOING TO COME FROM?
>> WELL, THE MONEY COULD COME
FROM A VARIETY OF PLACES.
FOR EXAMPLE, IF YOU OWN A HOME,
YOUR REASSESSMENT COULD
INCREASE YOUR TAXES, SCHOOL
TAXES ALWAYS GO UP.
THERE'S ALWAYS WAYS TO GET
REVENUE WITHOUT RAISING THE
COUNTY PROPERTY TAX.
>> ALSO THE CUTTING SERVICES
AND THE SIZE OF COUNTY
GOVERNMENT SEEMS LIKE THE WAY
HE'S CHOOSING TO GO.
>> THERE WOULD BE ANOTHER WAY,
TOO.
THAT COULD BE CONSOLIDATION,
EVEN THOUGH THE MAYOR AND
COUNTY EXECUTIVE HAVE DIFFERENT
VIEWS.
>> DO THEY SAY THAT WORD TO
EACH OTHER?
>> I DON'T KNOW WHAT THEY SAY
TO EACH OTHER THESE DAYS.
THEY HAVE MENTIONED
CONSOLIDATION, BUT I THINK THEY
HAVE A DIFFERENT VIEW OF WHAT
CONSOLIDATION IS.
>> NOW, THE MAYOR IS MAYBE
CAUSED SOME ANXIETY BY THE TALK
OF REDUCING THE SIZE OF COUNTY
GOVERNMENT, PARTICULARLY
BECAUSE OF THE REVENUE
AGREEMENT AND HOW THEY SPLIT UP
THE TAX REVENUE BETWEEN THE
CITY AND COUNTY.
SHOULD THE CITY BE ANXIOUS
HERE?
>> THE MAYOR SAID THAT
NEGOTIATIONS ARE GOING TO BE
TOUGH NEXT YEAR BECAUSE
DEPENDING ON THE DOLLAR SALES
TAX INCREASE DOES COME UP FOR
RENEW NEXT YEAR, THE COUNTY
EXECUTIVE SAID HE WILL NOT TALK
ABOUT IT PUBLICLY.
THE REASON WHY IS THERE'S SO
MANY ENTITIES INVOLVED.
IT IS JUST NOT THE CITY AND
COUNTY, IT'S THE VILLAGES, THE
TOWNS, THE SCHOOL DISTRICTS.
>> THAT DISCUSSION HAS TO
HAPPEN NEXT YEAR.
>> YES.
>> IN ORDER TO CREATE THE NEW
BILL.
SO THAT COULD BE RIGHT ON THE
TABLE.
>> YES.
>> HOW MUCH SALES TAX REVENUE
THE CITY GETS THAT THE COUNTY
DOLLED OUT.
WHAT ARE THE DEMOCRATS IN THE
COUNTY LEGISLATURE SAYING
ABOUT THIS?
>> WELL, THE MINORITY LEADER
HELD A NEWS CONFERENCE EARLIER
IN THE WEEK.
WHAT SHE WANTS IS MORE
PARTICIPATION INTO THE BUDGET
MAKING PROCESS.
SHE WOULD LIKE HERSELF AND THE
MAJORITY LEADER OF THE COUNTY
LEGISLATURE TO BE INVOLVED IN
THAT.
I SPOKE TO THE DIRECTOR OF
COMMUNICATIONS FOR THE COUNTY,
JAMES SMITH.
HE SAID BASICALLY WHAT YOU HAVE
IS WHAT YOU HAVE IN OTHER
GOVERNMENTS; THE EXECUTIVE
PROPOSES THE BUDGET, THEN GIVES
IT TO THE LEGISLATURE, THEY
DEBATE ON IT AND VOTE.
>> MARK, THANKS FOR JOINING US.
APPRECIATE YOUR TIME.
BE SURE TO BE LISTENING AT WXXI
AM-1370 OR LOG ON TO WXXI.ORG
FOR THE LATEST DEVELOPMENTS ON
THIS STORY.
>>> NOW, A LOOK AT THE SLUMPING
CONSTRUCTION INDUSTRY IN THE
ROCHESTER MARKET.
PERHAPS NO WORKERS MORE QUICKLY
FEEL THE DIP IN THE ECONOMY
THAN THOSE WHO BUILD.
THE NUMBERS TELL THE STORY.
ACCORDING TO FIVE BUILDING AND
TRADE UNIONS, THE NUMBER OF
TOTAL HOURS WORKED DURING THE
FIRST HALF OF 2002 IS 28% LESS
THAN THE SAME TIME A YEAR AGO.
THE STATE LABOR DEPARTMENT
REPORTS THAT, ON AVERAGE, TOTAL
CONSTRUCTION JOBS IN THE
ROCHESTER REGION IS OFF ABOUT
4% SO FAR THIS YEAR COMPARED TO
2001.
NOW, "NEED TO KNOW"'S MICHAEL
CAPUTO LOOKS AT THE FORCES
BEHIND THE SLOWDOWN AND WHAT
MAY LIE AHEAD FOR THOSE IN THE
CONSTRUCTION INDUSTRY.
>> Reporter: THE SIGNS ARE
THERE.
CONSTRUCTION WORK IS OCCURRING
IN THE ROCHESTER COMMUNITY --
JUST AS YOU WOULD EXPECT DURING
THE SUMMER.
BUT FOR THOSE IN THE
CONSTRUCTION INDUSTRY, THIS HAS
BEEN ANYTHING BUT A TYPICAL
YEAR.
JUST ASK JIM SLATTERY, A
14-YEAR PLUMBER AND MEMBER OF
THE LOCAL UNION.
SLATTERY SAYS IN A NORMAL YEAR
HE'S OUT OF WORK A TOTAL OF
THREE WEEKS.
THIS YEAR, SLATTERY WAS
UNEMPLOYED FROM DECEMBER TO
MID-APRIL.
>> YOU KNOW, I WAS JUST HOME
WAITING FOR WORK TO PICK UP.
THERE WAS, YOU KNOW, 80, 100
GUYS ON OUR BENCH OUT OF WORK.
SOME GUYS WERE OUT EVEN LONGER
THAN ME.
>> Reporter: SLATTERY IS FAR
FROM ALONE.
IN A YEAR WHEN THE ROCHESTER
CONSTRUCTION INDUSTRY IS, AT
BEST, SPOTTY, AND, AT WORSE,
APPROACHING AN ALL-OUT
RECESSION, THE JUNE NUMBER OF
CONSTRUCTION JOBS FROM THE
STATE LABOR DEPARTMENT --
20,800 -- IS THE LOWEST FIGURE
SINCE 1998.
THE ROCHESTER AREA UNION OF
OPERATING ENGINEERS SAY TOTAL
HOURS WORKED BY MEMBERS DURING
THE FIRST HALF OF THE YEAR IS
DOWN 30%.
AT THE LOCAL PLUMBER'S UNION,
HEADED UP BY RON BEHAN, THE
DROP-OFF IN TOTAL HOURS IS 21%.
BEHAN, WHO IS ALSO PRESIDENT OF
ROCHESTER LABOR COUNCIL, SAID
THE YEAR HAS BEEN SO BAD THAT
ROCHESTER LABORERS HAVE SOUGHT
WORK OUTSIDE THE REGION.
>> PROBABLY IN MAY OUR LOCAL
UNION HAD 25 PEOPLE WORKING IN
THE BUFFALO AREA.
IF ANYBODY TOLD ME LAST YEAR
THAT WE WOULD -- OUR PEOPLE
WOULD BE WORKING IN BUFFALO,
WHICH HASN'T HAD THE GREATEST
OUTLOOK FOR WORK, I WOULD SAY
YOU'RE CRAZY.
>> Reporter: THOSE IN THE
INDUSTRY SAY THE CONSTRUCTION
SLOWDOWN IS A SIGN OF THE
AREA'S WEAK ECONOMY.
>> AN AREA'S GROWTH OR WHATEVER
IS MEASURED BY -- I THINK, BY A
LOT BY CONSTRUCTION WORK.
AND WHEN YOU DON'T SEE CRANES
IN THE AIR WHATEVER, I THINK
EVERYONE SHOULD BE VERY
CONCERNED.
>> Reporter: SO WHAT'S
CREATING THIS CONSTRUCTION
PROBLEM?
ONE THING IS OBVIOUS.
THE ECONOMY.
ESPECIALLY NEW YORK STATE'S
ECONOMY HAS BEEN REELING SINCE
THE SEPTEMBER 11th ATTACKS IN
NEW YORK CITY.
GOVERNMENTS ON ALL LEVELS HAVE
PULLED BACK ON PUBLIC WORKS
PROJECTS TO MAKE ENDS MEET.
A FEW MONTHS AGO MONROE COUNTY
DELAYED SOME OF ITS LONG-RANGE
CONSTRUCTION PROJECTS AS A WAY
TO DEAL WITH THE GROWING BUDGET
CRUNCH.
THE WILD DROPS IN THE STOCK
MARKET HAVE CAUSED PRIVATE
COMPANIES TO RETHINK THEIR
CONSTRUCTION PLANS.
THE LOCAL UNIONS SAY THERE IS
ANOTHER PROBLEM -- A LOCAL ONE.
BIG-TICKET HIGH-PRICED PROJECTS
ARE JUST NOT GETTING DONE IN
ROCHESTER.
THOSE INCLUDE A BUS TERMINAL, A
PERFORMING ARTS CENTER, AND A
SOCCER STADIUM PLANNED FOR THIS
GATES FIELD NEAR ROCHESTER
TECHNOLOGY PARK.
RON BEHAN BLAMES ARGUING AMONG
THE LOCAL POLITICAL LEADERSHIP.
>> I THINK ALL THE CONSTRUCTION
INDUSTRY, WHETHER IT'S UNION OR
NON-UNION IS FRUSTRATED BECAUSE
THERE'S NOT ENOUGH WORK AND
EVERYONE FEELS THAT IF THERE
WAS COOPERATION AND
NEGOTIATION, GOOD NEGOTIATION,
THAT THESE PROJECTS ARE
POSSIBLE.
THEY ARE DOABLE.
AND THAT'S WHAT WE'RE LOOKING
FOR.
>> Reporter: FOR INSTANCE,
BEHAN SAYS THAT REPRESENTATIVE
LOUISE SLAUGHTER'S OPPOSITION
TO THE BUS TERMINAL PROJECT HAS
HELD IT HOSTAGE.
A SLAUGHTER SPOKESPERSON SAID
THE CONGRESSWOMAN HASN'T
SUPPORTED THE PROJECT BECAUSE
SHE FEELS IT ISN'T A GOOD USE
OF TAXPAYER MONEY.
SLAUGHTER WOULD RATHER SEE A
TRANSIT CENTER THAT ALSO
INCLUDES RAIL SERVICE.
HAVING A FEW BIG-TICKET PUBLIC
WORKS PROJECTS WOULD ONLY BE A
SHORT-TERM SOLUTION FOR THE
PROBLEM, SAYS RAY SHORTINO.
SHORTINO RUNS RADEC
CORPORATION, A NON-UNION
ELECTRICAL WORK COMPANY, OR
MERIT SHOP.
>> CERTAINLY PUBLIC WORKS
PROJECTS ARE ALWAYS SHORT-TERM
SOLUTIONS.
WE CAN EASILY PUT SEVERAL
HUNDRED PEOPLE TO WORK FOR A
FEW MONTHS AND THEN EVENTUALLY
HAVE TO RAISE TAXES TO PAY OFF
THE BONDS.
AND SOMEHOW DOWN THE ROAD
THE MONEY HAS GOT TO COME FROM
SOMEPLACE.
IF THOSE INCREASED TAXES RESULT
IN LESS PRIVATE BUSINESS, IT'S
NOT GOING TO WORK.
>> Reporter: SHORTINO SAYS THE
BEST THING GOVERNMENT IN NEW
YORK STATE COULD DO TO SPUR ON
CONSTRUCTION IS REDUCE HIGH
TAXES AND FEES ON BUSINESSES.
THAT MEANS CUTTING GOVERNMENT
COSTS.
>> IT'S HARD TO BITE THAT
BULLET.
BUT I THINK IT'S GOT TO BE
DONE.
>> Reporter: SHORTINO SAID
MERIT SHOPS LIKE HIS ARE
WEATHERING THIS STORM, AND HE'S
CAUTIOUSLY OPTIMISTIC ABOUT THE
COMING MONTHS.
BEHAN SAID THAT BOTH UNION AND
NON-UNION SHOPS WILL STRUGGLE
IN THE NEXT YEAR WHEN LOCAL
SCHOOL CONSTRUCTION PROJECTS
END.
SLATTERY BELIEVES THE NEXT
CONSTRUCTION SEASON WILL BE A
REPEAT OF THIS ONE.
>> I DEFINITELY ANTICIPATE THIS
WINTER, FALL, THERE WILL BE
MORE LAYOFFS IN MY LOCAL.
>>> THANK YOU, MICHAEL.
IN STUDIO WITH US ARE EXPERTS
FROM BUSINESS, LABOR AND
GOVERNMENT TO FURTHER EXPLORE
THIS ISSUE.
I WOULD SAY HEAVY HITTERS ALL
OF YOU.
THANK YOU FOR JOINING US.
MR. LeCHASE, YOU OWN LeCHASE
COMPANIES.
YOU BUILD, BUILD, BUILD, THAT'S
WHAT YOU DO.
DO YOU AGREE WITH THE OUTLOOK
THAT PERHAPS WITH THE THREE,
FOUR, FIVE MONTHS, FALL,
WINTER, SPRING, YOU WON'T KEEP
LABORERS BUSY?
>> THE OUTLOOK IS CERTAINLY NOT
VERY ROBUST.
WE'RE FACING A 2003
CONSTRUCTION YEAR, WHICH SHOULD
BE GEARING UP NOW, WE SEE AN
AWFUL LOT OF WEAKNESS BOTH ON
THE PRIVATE SECTOR AND THE
PUBLIC SECTOR.
IT'S VERY CONCERNING, YES.
>> WE ALSO HAVE SENATOR MICHAEL
NOZZOLIO HERE.
THANK YOU FOR JOINING US.
SENATOR, ONE UNION OFFICIAL IN
THE OPERATING ENGINEER, SAID
ONE OF THE PROBLEMS THAT
GOVERNMENT MONIES FLOWING DOWN
THE HUDSON, MEANING THAT WE'RE
LOSING PUBLIC FUNDING TO THE
NEW YORK CITY AREA IN THE WAKE
OF 9-11.
DOES THAT WASH WITH YOU?
>> IT'S BEEN MY CONCERN THAT
ROCHESTER AND THE ROCHESTER
REGION HADN'T HAD ENOUGH CRANES
IN THE AIR DURING THE BEST OF
TIMES PRIOR TO 9-11 THAT THE
DELEGATION FOUGHT HARD TO GET
MONEY FOR PROJECTS LOCALLY.
THAT PUBLIC WORKS PROJECTS WERE
FIGHTING, CERTAINLY, WITH A RENEWED VIGOR CERATINLY TO SEE A
REINVIGORATION OF OUR ECONOMY, CHANGING THAT
ECONOMY FROM A MANUFACTURING
BASE ECONOMY TO A HIGH-TECH
ECONOMY, THINGS THAT ARE
HAPPENING AT THE TECH PARK,
UNIVERSITY OF ROCHESTER MEDICAL
CENTER, THE COMMERCIALIZATION
OF NEW SCIENCE THERE, THE
CENTER FOR EXCELLENCE, $160
MILLION PROJECT THAT GOVERNOR
PATAKI JUST ANNOUNCED FOR THE INFOTONICKS IN ROCHESTER WHICH
WILL BE PART OF
AN EMPIRE CORRIDOR EXTENDING
FROM ALBANY TO BUFFALO THAT HAS
AS MUCH POTENTIAL TO GROW JOBS
AS THE ERIE CANAL DID 150 YEARS
AGO.
BUT AS WE FACE A POST 9-11
ECONOMY AND THE ROLLER COASTER
RIDE OF WALL STREET, I THINK
IT'S MORE IMPORTANT NOW THAT
THE PUBLIC SECTOR STEP UP TO
THE PLATE AND WE COMPLETE THE
PUBLIC SECTOR JOBS THAT ARE ON
THE DRAWING BOARD.
CERTAINLY THE SOCCER STADIUM,
THE JUVENILE JUSTICE CENTER,
THE TRANSIT CENTER.
THOSE PROJECTS WOULD MAKE AN
AWFUL LOT OF SENSE,
PARTICULARLY SINCE SOME ARE
FUNDED --
>> RIGHT.
>> ALREADY FROM THE STATE, THAT
WE HAVE THOSE PROJECTS AGREED
UPON AND HAVE THEM BUILT HERE
LOCALLY.
>> WELL, LET ME TURN TO MICHAEL
DOWNEY, BUSINESS MANAGER FOR
THE IRONWORKERS UNION, LOCAL
33.
YOU HEARD FELLOW LABORER, RON
BEHAN, SAY THAT, YOU KNOW, WE
NEED THESE PUBLIC PROJECTS, AND
POINTED TO A LACK OF
COOPERATION AMONG POLITICAL
LEADERS.
>> UM-HUM.
>> DO IRONWORKERS SHARE THAT
VIEW?
>> YES, WE DO.
A LOT OF THESE PROJECTS THAT
WERE MENTIONED I THINK WE'VE
BEEN TALKING ABOUT THEM FOR
PROBABLY LIKE THE LAST THREE OR
FOUR YEARS, AND WE'RE VERY
FRUSTRATED, IT SEEMS LIKE
THERE'S A LOT OF TALKING GOING
ON, BUT NOT A LOT OF
COMPROMISING, AND I KNOW
THERE'S POLITICAL EGOS
INVOLVED, BUT WE FEEL AT SOME
POINT THOSE DOLLARS HAVE TO
COME TO ROCHESTER AND OUR LOCAL
DELEGATION NEEDS TO GET
TOGETHER AND, YOU KNOW, COME UP WITH A COMPROMISE, MAYBE ON
TWO PROJECTS OR WHATEVER, BECAUSE WE'RE LOSING MONEY.
I THINK THE LAST STUDY THAT WAS
DONE, FOR EVERY DOLLAR WE SENT
TO ALBANY, WE GET BACK I THINK
87 CENTS ON THE DOLLAR.
I THINK SYRACUSE WAS 1.11 ON A
DOLLAR AND BUFFALO IS I BELIEVE
AROUND 1.07.
>> RIGHT.
THE TWO AREAS OF THE STATE THAT
CONSISTENTLY SPEND MORE MONEY
TO ALBANY THAN THEY GIVE BACK IS ROCHESTER AND NEW YORK
CITY.
SENATOR NOZZOLIO, YOU ARE PART
OF THE LOCAL DELEGATION.
PART OF THE REPUBLICAN
MAJORITY.
I WOULD SAY YOU'RE FAIRLY CLOSE
TO THE MAJORITY LEADER AND YOU
CARRY I THINK A LOT OF
AUTHORITY WITH YOU WHEN YOU GO
THERE.
LET ME ASK YOU POINT BLANK, WHY
CAN'T THE LOCAL DELEGATION AND
THE LOCAL COMMUNITY LEADERS GET
TOGETHER?
I MEAN, I'M NOT SAYING IT'S ALL
ON YOU, BUT YOU'RE PART OF THAT
MIX.
WHY CAN'T --
>> THE REASON I HAVE GRAY HAIR,
AND THE BIGGEST FRUSTRATION
I'VE HAD.
I WISH I COULD --
>> I WISH I COULD BLAME IT ON
THAT.
>> IT'S THE PHENOMENA THAT I AM
GROWINGLY CONCERNED OVER, THAT
THE LARGEST CONSTRUCTION
PROJECT IN THE REGION WAS HELD
IN MY DISTRICT WITHOUT THE
SQUABBLING AND THE CONCERNS.
WE BUILT $180 MILLION DOLLAR
MAXIMUM SECURITY PRISON OF
WHICH WE HAD HUNDREDS OF
WORKERS, MANY CONTRACTORS
INVOLVED WITH, AND THAT WAS
DONE IN 1/10th THE TIME THAT
FIGHTING OVER ISSUES LIKE THE
TRANSIT CENTER AND THE STADIUM
WHICH ARE QUALITY OF LIFE
ISSUES WHICH WOULD ENHANCE THIS
COMMUNITY OVER THE LONG TERM BY
ENCOURAGING PEOPLE TO COME HERE
TO GROW THEIR FAMILIES HERE, TO
LEARN HERE.
WHY THE FIGHTING?
I THINK IT'S AMAZING.
WE SEE AN OVER CONCERN OF
PROCESS, AN OVER CONCERN OF
POLITICAL POSTURING, WHO GETS
THE CREDIT IS ALL TOO OFTEN THE
WATCH WORD WHERE SOME OF THE
LEADERSHIP LOCALLY.
THAT I THINK, THOUGH, LOOKING
BACK, MAYBE ROCHESTER, TOO,
HADN'T NEEDED THESE PUBLIC
WORKS PROJECTS, GENERALLY,
BECAUSE KODAK AND XEROX WERE
PROVIDING THAT STABILITY OF
EMPLOYMENT.
THAT NOW THE TIMES ARE HARDER,
AND AS THE ECONOMY IS IN
TRANSITION AT THESE MAJOR
COMPANIES ARE FACING VERY
DIFFICULT TIMES FOR THE FIRST
TIME, THAT WE'LL SEE MORE OF A
DESIRE TO GET PUBLIC FUNDS IN
PUBLIC PROJECTS.
>> I'LL PUT YOU ON THE SPOT IN
A MINUTE, AS LONG AS WE HAVE
YOU HERE.
THANK YOU SO MUCH FOR COMING.
MR. LeCHASE, NOW, IT WAS SAID
IN MICHAEL'S PACKAGE THAT, YOU
KNOW, GOVERNMENT PROJECTS LIKE
THAT ARE GOOD FOR THE
SHORT-TERM, ARE GOOD BRIDGES,
BUT REALLY IT'S THE PRIVATE
SECTOR THAT HAS TO STEP UP, AND
MOST CONSTRUCTION WILL BE
PRIVATE SECTOR GENERATED.
WHAT'S THE HOLDUP ON THE
PRIVATE SECTOR, AND WHAT DO YOU
THINK THE OUTLOOK IS?
>> WELL, I THINK ROCHESTER HAS
BEEN VERY FORTUNATE, BECAUSE IN
ESSENCE WE'VE BEEN
RECESSION-PROOF FOR A LONG
TIME.
THE LIKES OF THE KODAKS AND THE
XEROXES AND THE B & L'S.
I THINK AS THEIR INFLUENCE IN
OUR COMMUNITY DIMINISHES AND
QUITE FRANKLY THEY ARE HAVING
THEIR OWN PROBLEMS, AS WE ALL
KNOW, THERE NEEDS TO BE A NEW
LEADERSHIP FROM THE PRIVATE
SECTOR THAT COMES FORWARD IN
THIS COMMUNITY AND BEGINS TO
TAKE A LEAD ROLE IN MAKING
THINGS HAPPEN LONG TERM, LIKE
RAY SAID, I THINK THAT UNLESS
WE ARE -- WE FIND THAT THE
PRIVATE SECTOR BEGINS TO BECOME
INVOLVED, COMMITTED, AND GETS
TO A PROGRAM THAT IDENTIFIES A
STRATEGIC PLAN FOR OUR
COMMUNITY LONG TERM, WE'RE
GOING TO CONTINUE TO HAVE THIS
FRAGMENTATION THAT INVOLVES --
>> MR. LeCHASE, WHO IS GOING TO
PROVIDE LEADERSHIP FROM THE
PRIVATE SECTOR?
IN THE OLD DAYS, YOU KNOW, THE
CEO OF XEROX AND KODAK CAME
DOWN FROM HIGH AND THINGS
HAPPENED.
WHO PROVIDES THAT LEADERSHIP
NOW THAT WE ARE IN A SENSE A
BRANCH OFFICE TOWN FOR THE
MAJOR CORPORATIONS?
>> THAT'S A VERY GOOD QUESTION.
I'VE BEEN PART OF MANY
INCENTIVE -- OR NEW INITIATIVES
THAT HAVE DRIED TRIED TO
IDENTIFY VARIOUS MEANS AND
METHODS OF PEOPLE WHO MIGHT BE
ABLE TO FILL THAT GAP, THE GAP
PROBABLY LEFT BY GEORGE EASTMAN
AND HIS SUCCESSORS.
>> JOE WILSON.
>> JOE WILSON, RIGHT.
AND QUITE FRANKLY, EVERYONE --
IT ALWAYS TURNS OUT THAT
THERE'S ANOTHER AGENDA AND
ANOTHER PROBLEM, AND THERE
REALLY ISN'T ANYONE WHO HAS, A,
THE WHEREWITHAL, AND B, THE
INFLUENCE OR COMMITMENT TO TAKE
ON A PROGRAM THAT'S GOING TO
LOOK FORWARD TO THE WELL-BEING
OF OUR COMMUNITY.
UNLESS THAT PRIVATE SECTOR
COMES TOGETHER, IT IS NOT, IN
MY OPINION CORRECT TO CHASTISE
THE PUBLIC SECTOR FOR NOT
COMING TOGETHER.
I THINK UNLESS THERE'S
DIRECTION FROM THE PRIVATE
SECTOR, THOSE OF US WHO PAY THE
BILLS, IT'S -- THE CRITICISM IS
MISS DIRECTED WHEN IT COMES TO
THE PUBLIC SECTOR.
THE PUBLIC SECTOR IS TO SERVE
US, NOT TO TELL US WHERE WE'RE
GOING TO BE AND HOW WE'RE GOING
TO LIVE.
>> MR. DOWNEY, WHAT DO YOU THINK
OF THAT?
>> I AGREE WITH HIS THOUGHTS.
I THINK FOR THE ROCHESTER AREA,
LIKE WAYNE SAID, THE XEROXES,
THE KODAK, THE OTHERS AREN'T
EXPANDING LIKE THEY WERE.
NOW YOU HAVE CORNING GLASS.
YOU LOOK IN THE PAPER THIS
MORNING, 1.60 A SHARE.
FIBER OPTICS, THE PHOTOTONICS
SECTORS, TELECOMMUNICATIONS
SECTOR WHICH WAS REALLY GOING
STRONG FOR ROCHESTER PROBABLY
TWO YEARS AGO IS STAGNANT RIGHT
NOW.
>> OKAY.
WE HAVE A COUPLE MINUTES LEFT.
I WANT TO -- I'VE BEEN TALKING
A LOT OF BUSINESS OWNERS, AND
LABORERS AND WORKERS AND
CITIZENS.
HERE'S WHAT THEY HAVE TO SAY.
AND PLEASE, JUMP IN AND DEBUNK
IT ALL.
THEY ARE SAYING NEW YORK,
DESPITE ALL THE CAMPAIGN ADS,
IS JUST TOO EXPENSIVE OF PLACE TO
DO BUSINESS.
IT'S TOO RESTRICTIVE IN ITS
REGULATIONS.
TAXES ARE TOO HIGH.
UNIONS ARE TOO STRONG, AND THEY
PUT A STRANGLE HOLD ON SOME OF
THE THINGS THE CONTRACTORS WANT
TO DO.
AND THE CONTRACTORS ARE ONLY
BUILDING THINGS THAT MAKE THEM
LOTS OF MONEY, OR IT'S GOT TO
BE IN A PRISTINE AREAS, OR THEY
ARE UNWILLING TO GO BACK IN --
>> HERE'S WHAT THE PEOPLE ARE
SAYING.
I LOVE TO HEAR YOUR REACTION TO
ALL THAT.
I THINK ALL OF WHAT THEY ARE
SAYING IS TRUE.
I MEAN, NEW YORK IS AN
EXPENSIVE PLACE TO DO BUSINESS,
BUT IT HAS SOME RESOURCES THAT
NOWHERE ELSE IN THE COUNTRY
HAS.
AND UNLESS WE FIND A WAY TO
CREATE WEALTH FROM THE
RESOURCES THAT WE HAVE, THE
HIGH-TECH, THE BIO -- THE
INFOTONICKS, THE NOT FOR PROFIT
STRUCTURE I THINK IS PROBABLY
ONE OF THE BEST IN THE COUNTRY.
UNLESS WE FIND A WAY THE
PRIVATE SECTOR FINDS A WAY TO
PUT ALL OF THAT TOGETHER IN A
PLAN THAT PLOTS OR STRATEGIZES
ROCHESTER, NEW YORK FOR
THE NEXT 20 YEARS, WE ARE GOING
TO CONTINUE TO BE FRUSTRATED BY
INACTION.
>> WHAT WOULD YOU LIKE TO SEE
ORGANIZED LABOR PLAN,
GOVERNMENT PLAN IN THAT?
>> LET ME FINISH.
WE NEED TO CREATE WEALTH.
WHEN WE CREATE WEALTH ACROSS
THE BOARD, YOU'LL FIND THAT A
LOT OF THESE BARRIERS TO
PROGRESS SUDDENLY BECOME
TOLERABLE BECAUSE WHAT HAPPENS
IS THAT A RISING TIDE RAISES
ALL SHIPS, AND I THINK THAT A
LOT OF WHAT WE'RE PLAYING TO IN
TERMS OF BARRIERS AND PROBLEMS
ARE MORE THE RESULTS OF A LACK
OF PRIVATE INDUSTRY, DECIDING
ON THE FUTURE OF OUR COMMUNITY.
THE CREATION OF WEALTH COMES
FROM INNOVATION IN THE
HIGH-TECH FIELD.
I THINK WE ARE THE SECOND OR
THE FIRST PER CAPITA IN PATENT
APPLICATIONS.
>> RIGHT.
>> I DON'T KNOW THE EXACT
DOLLARS, BUT WHAT IS HAPPENING
TO ALL OF THIS TECHNOLOGY, IS
IT LEAVING?
IS IT HERE?
IS IT ON THE SHELF?
>> I THINK --
>> YOU HAVE A MINUTE, GO AHEAD.
>> IT'S COMING THAT WE'RE
CHANGING FROM A CHEMICAL AND
FILM-BASED ECONOMY TO A BIOTECHNICAL
ECONOMY.
GENENCORE, ONE OF THE LARGEST
BIOTECH FIRMS IN THE WORLD IS
RELOCATING A MAJOR OPERATION
HERE IN ROCHESTER.
A CHIP MANUFACTURER IS COMING
TO ALBANY THAT WE'RE SEEING
MAJOR HIGH-TECH INDUSTRIES
COMING TO NEW YORK IN SPITE OF
THE TAXES, IN SPITE OF THE
REGULATIONS, BECAUSE OF WHAT WE
HAVE HERE, WHICH ARE GREAT
UNIVERSITIES, GREAT MINDS AND A
GREAT INFRASTRUCTURE FOR THE
DEVELOPMENT.
>> WE WRAP IT UP BY SAYING,
THEN, WHEN YOU TALK TO THE
LABORERS HERE, SUCK IT UP,
BETTER TIMES ARE COMING?
>> WE'RE IN TRANSITION.
WE NEED TO PROMOTE THAT
TRANSITIONAL EFFORT TO BIOTECH
AND TO HIGH-TECH.
AND YES, THE COMMERCIALIZATION
WILL RESULT IN MANY MORE
CONSTRUCTION JOBS THAN WE EVER
HAD.
>> THE LAST WORD.
HOW DOES THAT FEEL?
>> WELL, WHEN YOU TALK ABOUT
HIGH TAXES, TAX BREAKS,
EXPANSIONS, SO FORTH, COMIDAS
HAS TAKEN A STRONG ROLE
IN GIVING TAX BREAKS.
>> YOU THINK THINGS WILL GET
BETTER FOR YOU FOLKS?
>> YES, I DO.
>> THANK YOU VERY MUCH.
THAT'S ALL THE TIME WE HAVE FOR
DISCUSSION.
FOR MORE INFORMATION ON THIS
ISSUE, JUST LOG ON TO OUR
WEBSITE, IT'S WXXI.ORG/NTK.
WHILE YOU'RE THERE, TAKE PART
IN OUR WEEKLY INTERNET POLL.
ALWAYS FOR COMPREHENSIVE DAILY
COVERAGE OF STATE ISSUES, SO
IMPORTANT RIGHT NOW, IT'S
NYCITIZENS.ORG.
NOW
IT'S TIME FOR THIS WEEK'S
EDITION OF "THE BUSINESS
SECTION" WITH THE "THE
DEMOCRAT AND CHRONICLE."
(Music)
>>> JOINING US NOW
IN STUDIO IS
ELLEN ROSEN, EDITOR OF THE
BUSINESS SECTION OF THE
DEMOCRAT AND CHRONICLE.
ELLEN, THANKS FOR COMING AGAIN
THIS WEEK.
>> HI, GARY.
>> A LOT OF NEWS COMING OUT OF
THE U.S. DISTRICT COURT.
WE'LL HEAR THE GLOBAL CROSSING
CASE, THE LAWSUITS WILL BE HERE
IN ROCHESTER.
WHAT ARE SOME OF THE ISSUES IN
FRONT OF HIM?
>> ACTUALLY THIS IS A
COMPILATION OF 70 CLASS ACTION
SUITS THAT A JUDICIAL PANEL
DECIDED TO BRING HERE,
CONSOLIDATE, PICK A LEAD
PLAINTIFF AND CONSOLIDATE IN
ONE THING.
THERE ARE A COUPLE DIFFERENT
ISSUES.
FIRST OF ALL, THE BIG ONE IS
WHETHER OR NOT THE OFFICERS OF
THE COMPANY MISLED INVESTORS AS
TO THE STATE OF THE COMPANY,
WHETHER THEY WERE OUT THERE
ISSUING RECOMMENDATIONS TO BUY
THE STOCK, STRONG BUYS WHEN
THEY ACTUALLY KNEW THE COMPANY
WAS IN FINANCIAL DECLINE.
THAT'S ONE OF THE ISSUES.
THEN THERE'S ANOTHER ISSUE,
WHICH IS PARTICULARLY RELEVANT
HERE, ALSO FOR EMPLOYEES AND
BECAUSE GLOBAL CAME IN AND
BOUGHT FRONTIER, AND THERE WERE
THOUSANDS OF EMPLOYEES AND
RETIREES THAT ENDED UP WITH
GLOBAL STOCK IN THEIR 401-K'S,
WHETHER OR NOT THEY BEHAVED
CORRECTLY WITH THAT.
THERE WERE PERIODS OF LOCKDOWNS
WHERE EMPLOYEES WERE NOT
ALLOWED TO TRADE STOCK AND GET
IT OUT OF THEIR PORTFOLIO, BUT
THE TOP EXECUTIVES WERE TRADING
AND MAKING HUNDREDS OF MILLIONS
OF DOLLARS.
THESE PEOPLE GOT STUCK WITH
NOTHING.
>> AS A SHAREHOLDER AND
EMPLOYEE CLASS ACTION LAWSUIT,
OR MOSTLY SHAREHOLDER?
>> IT'S BOTH.
>> NOW, WHAT DO THE
SHAREHOLDERS WANT OUT OF THIS?
>> THE BIG THING IS MONEY.
THEY ARE TRYING TO GET SOME
SORT OF REDRESS FOR THE MONEY
THEY LOST.
PEOPLE SAW THEIR 401-K'S
DISAPPEAR.
THEY ARE TRYING TO GET MONEY.
WHAT'S INTERESTING IS GLOBAL IS
A BANKRUPT COMPANY, NO MONEY TO
GET THERE.
THIS TIME THEY ARE GOING AFTER
THE ASSETS OF THE EXECUTIVES SO
THEY CAN PROVE WRONGDOING,
THAT'S WHAT THEY ARE GOING
AFTER.
SHOULD BE AN INTERESTING CASE.
>> THE ASSETS THAT THE
EXECUTIVES ATTAINED WHILE IN
CHARGE, THAT'S WHAT THEY WILL
GO AFTER.
>> RIGHT.
THE PERSONAL ASSETS, YEAH.
>> WOW.
THESE SEEM PRETTY COMPLEX.
HOW LONG WILL IT TAKE?
>> YOU KNOW, A CASE LIKE THIS
CAN TAKE QUITE A WHILE.
THERE'S A LOT OF STUFF THAT HAS
TO HAPPEN BEFORE IT CAN EVEN GO
TO TRIAL.
I THINK THERE'S ALL DUE SPEED
TO GET THIS DONE, AND THE JUDGE
IS NOTED AS SOMEONE WHO LIKES
TO KEEP THINGS RUNNING, KEEP THE
TRAIN ON TIME.
HE HAS A NUMBER OF HIGH PROFILE
CASES, BEEN DOWN THIS ROAD
BEFORE.
I THINK YOU'LL SEE A AS QUICK A
RESOLUTION AS HE CAN GET GOING.
I THINK THEY WILL TRY TO START
NEXT MONTH.
>> HE IS A TOUGH GUY.
THE ONE THAT DID THE ATTICA
PLAINTIFFS SUIT.
WHAT DID THE PLAINTIFFS LAWYERS
THINK ABOUT HAVING HIM FOR A
JUDGE?
>> I THINK THEY ARE PLEASED.
HE HAS A REPUTATION FOR INTENSE
FAIRNESS, FOR CARING ABOUT THE
COMMUNITY, MAKING SURE
JUSTICE IS DONE.
HE'S NOT THE KIND TO LET HIS
COURT TURN INTO A CIRCUS.
BUSINESS WILL BE TAKEN CARE OF.
I THINK EVERYONE IS PLEASED
WITH THE CHOICE.
>> YOU WILL BE FOLLOWING THAT
CASE.
>> OF COURSE WE WILL, YES.
>> TODAY YOU HAD AN INTERVIEW
WITH DAN CARP, CEO OF KODAK.
SAID SOME INTERESTING THINGS.
THE ONE THING I BELIEVE HE
SAID, THE ROCHESTER SHOULD BE
FOREVER THE HOME OF KODAK.
STRONG WORDS.
HE WENT ON TO PRAISE THE AREA,
SAID HE WOULDN'T LIKE TO BE IN
SOUTH CAROLINA IN THE SUMMER,
OTHER THAN THE WEATHER, HE
TALKED BULLISH ON THIS AREA.
>> WELL, HE'S THE BIGGEST
BOOSTER.
HE SAID BEFORE AND SAID IT
AGAIN HE NEVER HAS TROUBLE
GETTING PEOPLE TO COME TO WORK
HERE.
YOU GET PAST TALKING ABOUT THE
BAD WEATHER IN TWO MINUTES, BUT
HE TELLS PEOPLE ABOUT THE OTHER
ASSETS OF THE COMMUNITY, THE
CLOSENESS TO TORONTO, TO THE
FINGER LAKES, TO, YOU KNOW, THE
OTHER CLIMATES, THE PARK SYSTEM
AND EDUCATIONAL SYSTEM.
HE DOESN'T HAVE A PROBLEM WITH
THAT.
WE ARE STILL THEIR LARGEST
OPERATION STILL HERE IN
ROCHESTER.
>> NOW, IN A COUPLE WEEKS HE
HAS TO SIGN A PIECE OF PAPER
THE FEDERAL GOVERNMENT WANTS
HIM TO SIGN USING HIS OWN NAME
SAYING THINGS WERE DONE CLEANLY
AT KODAK.
HE DOESN'T SEEM TO HAVE A
PROBLEM WITH THAT.
>> NO, HE DOESN'T.
BY AUGUST 14th THE GOVERNMENT
IS REQUIRING I THINK IT'S 945
U.S. COMPANIES THAT ARE
PUBLICLY TRADED TO SIGN --
THEIR CEOS TO SIGN THAT TO THE
BEST OF THEIR KNOWLEDGE UNDER
OATH THAT THEIR RECENT
STATEMENTS, FINANCIAL
STATEMENTS, ARE CORRECT, THAT
THERE IS NO MISREPRESENTATION
IN THOSE STATEMENTS.
THIS REALLY GIVES THESE GUYS A
PERSONAL STAKE THAT THEY,
ALTHOUGH CARP HAS ALWAYS SIGNED
THESE, THIS GIVES THEM A
PERSONAL STAKE BECAUSE IT'S LAW
NOW.
HE SAYS HE CAN SIGN THEM
TOMORROW, BUT HE'S USING THE
TIME TO GET ALL SORTS OF PEOPLE
IN TO TALK IN HIS OFFICE, IS
THERE ANYTHING I SHOULD KNOW
ABOUT ANYTHING YOU WOULD BE
EMBARRASSED ABOUT TO HAVE COME
OUT IN THE PAPER.
HE SAYS HE HASN'T FOUND
ANYTHING RIGHT NOW, BUT KODAK
HAS A LONG-STANDING REPUTATION
FOR INTEGRITY THAT GOES BACK,
AND ETHICS THAT GO BACK TO
GEORGE EASTMAN AND HE STANDS
BY THAT.
>> WHAT'S COMING UP SUNDAY?
>> SUNDAY WE ARE GOING TO TAKE
A LOOK AT A LOCAL COMPANY THAT
HAS A WORLD REPUTATION FOR
STAGES IT'S BUILT IN SOME OF
THE PERFORMING ARTS CENTERS ALL
OVER THE WORLD.
>> WE LOOK FORWARD TO THAT.
THANKS FOR JOINING US.
DON'T FORGET YOU CAN READ MORE
ABOUT THE PROGRAM ON OUR
WEBSITE, AT wxxi.org/ntk
AND
THAT'S ALL THE TIME WE HAVE FOR
THIS WEEK'S PROGRAM.
WE'LL SEE YOU NEXT WEEK.
(Music)