Small businesses give our communities character, provide jobs, and make up the core of our state and local economy. I have always been proud to champion small businesses, and that includes being honest about the challenges business owners face. In the wake of the COVID pandemic, New York’s private sector lost more than 1.7 million jobs, driving statewide unemployment from 4.4% to a devastating 16.2%. Applications for unemployment benefits surged, and the funds New York held in trust to pay out these claims were quickly exhausted. New York borrowed $11 billion from the federal government to continue paying claims.
This was not wildly unusual. Many other states did the same, but New York is one of only two states with outstanding balances. Until that debt is paid, New York State small businesses are required to pay substantially higher unemployment insurance taxes.
I’m exasperated that our small businesses are bearing the consequences of decisions made outside their control. Which is why I was gratified to see legislation in both the Senate and Assembly’s proposed budget that would provide some relief to small businesses. The Senate’s proposal includes a tax credit for businesses with 50 or fewer employees, reducing their per-employee costs. Small businesses are the lifeblood of our communities and I will be fighting hard to see relief included in the final budget.
