In a detailed address, Governor Kathy Hochul laid out her strategy to bolster Albany and New York State’s economic outlook by tackling unemployment insurance debt and prioritizing workforce housing expansion. Emphasizing a pro-business stance, Hochul highlighted efforts to streamline regulations and invest in critical infrastructure, including clean energy projects like nuclear power. The governor also underscored initiatives to address labor shortages via expanded community college programs and spotlighted New York’s emergence as a tech hub with the Empire AI supercomputer investment. Hochul’s plan aims to drive job growth, enhance affordability, and position Albany as a competitive market for innovation and business development.
Governor Hochul Delivers Remarks at Business Council of New York’s Annual Meeting
Governor Hochul: “I kept building and building the reserves to get us to about an excess of 15 percent. And in so doing it gave me a chance to use that to do a one-time infusion of money to pay off the unemployment insurance debt that was born on the backs of our employers. And when I looked at some of the bills that they were paying based on the number of employees and how much it was adding up, whether you’re a small business or large, I said, ‘If there’s one pro-business thing I can do, that’ll have a massive impact across the state, it is eliminating this.’”
Hochul: “We need to build more housing for our workforce. And that’ll be a great lift for employers in Central New York. I just looked at some modular homes there that we’re looking to expand. They look like gorgeous homes by the way, you cannot tell the difference because I have 50,000 jobs coming to Central New York with Micron. So, all across the state, the demand is only growing.”
Earlier today, Governor Hochul delivered remarks at the Business Council of New York’s Annual Meeting.
A rush transcript of the Governor’s remarks is available below:
Good morning everyone. Good morning. First of all, go Bills — I’m back Upstate. I can say that.
First of all, to Heather, leadership truly matters in all operations entities, government, certainly, but an organization like this where you have such credibility with your partners in government, it really makes a difference when you come to us. It’s reasonable, it’s well thought out. It is researched and I’m always proud we can find a pass together. And you were a very loud proponent and champion for the state to do something rather unprecedented, which is to dive into our reserves.
When I first became Governor, our reserves were about four percent. I had worked on 14 local government budgets and I knew that my Budget Director in the town of Hamburg always said we need to be about 15 percent. So, I kept building and building the reserves to get us to about an excess of 15 percent. And in so doing it gave me a chance to use that to do a one-time infusion of money to pay off the unemployment insurance debt that was born on the backs of our employers. And when I looked at some of the bills that they were paying based on the number of employees and how much it was adding up, whether you’re a small business or large, I said, “If there’s one pro-business thing I can do, that’ll have a massive impact across the state, it is eliminating this.” But Heather, I want to thank you and congratulate you on working so hard to get that over the finish line.
I know we have some representatives from the REDC. Marsha Gordon is here, the Co-Chair of the Mid-Hudson Regional Economic Development Council, and, of course, head of the Business Council of Westchester. And I know we have a number of elected officials in the room — John McDonald, Gary Warner, and Assemblymember Rivera — is still, or did you leave? You leave on me? Okay. Go Bills, there you go.
But I also know that you’ve been a little busy with the report. My team made sure I dissected it and read your analysis because I’m always looking for input from all perspectives and certainly the business perspective on what businesses like in New York is the most important to me to hear and to learn from. And I will say it talks about our strengths and it certainly points out the weaknesses, which I am very cognizant of.
You know my own family story, talk about how my dad worked at the steel plant, and struggled. I lived in Lackawanna, but eventually I talked about how he got a college degree. And over years having that credential allowed him to do something quite extraordinary when a few young guys talked to him about joining a company that was only a year old back in 1968. It was something known as a computer services company. How rare was that in Buffalo in 1968. So, my dad took the plunge at age 30 with five of his six little kids. And people at Bethlehem Steel thought he was crazy — that certainly they would go out of business and they did struggle. We had a lot of lean years, but eventually grew into a powerhouse of computer task group. And I know there’s many clients in this room. Because as a little kid, I used to go on the client calls. I went and visited Corning and Eastman Kodak and went around the state trying to just get business for him. So, you need to know in my heart there’s a very pro-business understanding and appreciation for the risks that’s involved and how the winds of change affect you, whether it’s out of Washington or tariffs and statewide policies.
And so, I’m very cognizant of that when I look at bills that people are encouraging me to pass. I also say, what is the impact on whomever, but always business as well when I think it’s going to have a — what is the impact? Are they involved? Do they have an alternative? Is there something else we can do to get to a position that is going to help our business and not hurt them. So, my philosophy has always been not just from my experience with my own failings, but also my siblings became serial entrepreneurs. They started businesses after businesses, and I was involved in serving as legal counsel to some of them. And so, I know what the regulations are, like I know what the stress is — like I know how to complain about the government, like every business does. But also now that I’m in government in a meaningful way, My job is to also make your jobs easier. You deserve to have a government that’s on your side, not on your back. And that’s what I’m going to continue fostering for the next many years in government.
So, you’ve heard some of the economic impact from Blake, I presume. He’s my Budget Director because he tells me how the winds are going and sometimes even though he looks like he’s perpetually happy and optimistic, I could see the clouds a little bit. And we certainly felt a lot of clouds and saw clouds across his face and indeed our state after July 4th when the dubbed Big Beautiful Bill that I can only call, the Big Ugly Bill was passed because Blake knew that was going to be a huge financial hit on us — what Washington did, and healthcare being in the line of fire number one.
It is a $13.5 billion hit to healthcare systems with the loss of Medicaid subsidies. The State of New York lost $7.5 billion in subsidies like that. We have to make up $3 billion next year, even just this year, midyear — figure out how to come up with the loss of $750 million. So, we have been working intensely on how to do this with minimal pain to people who’ve come to rely on these services.
We’ve had more than our share coming our way unanticipated out of Washington and that takes up a lot of my staff’s time and effort. But, we’ll figure it out. We’ll figure it out. But also, I’ve charged my staff with finding ways to streamline government. You need to know that’s important to me. We don’t need excessive government. We don’t need excessive programs.
You saw how I took on the CDPAP program. That was a program that was built to provide people to be able to select their own home care provider if they had health problems or debilitating situations — makes all the sense in the world until it’s abused. And we had ended up with 700 providers, these financial intermediaries in between the patient and the provider; whereas a state like California with double our population somehow managed to do it all with one financial intermediary. And as a result of this excess and explosive growth in this middleman position, we went from a $1.5 billion program to an $11.5 billion program with the same size population basically except there ended up being so much abuse and we’ve had many cases brought where the fraud and the waste and abuse. People charging the State of New York for reimbursement when they actually live in Florida or saying that they’re helping their grandmother and working 24 hours a day living in her house and charging the state. It was an abuse and I was warned there’s going to be a lot of pushback if you try to change that, but I cannot knowingly be the Governor of the State and know that there’s programs like that are so wildly expensive. When you look at what the drivers of our Budget, by far it is the Medicaid costs and the healthcare costs and education, and those are set.
Last year, we started our budgeting Medicaid — went up 12 percent before we even opened up the books, we want to get it right, we want to make sure we take care of people, but make sure that anytime we’re aware of abuse, we are going to fight it and fight hard because you are ultimately the ones paying for that.
So, I’m trying to look at programs like that and others where we can have substantial savings. This first year, you’re saving $500 million from what we did by streamlining that and getting it down to one provider despite massive opposition to those changes. And so I’m looking for more ideas like that, and I’m sure many of you out there see them. I’m on the verge of hiring a top-notch professional to oversee an office that’s going to look at regulatory opportunities. I think, is Bob Duffy here? Bob Duffy, something. If you’re standing here, I can’t — oh, Bob, great to see you again. And I always harken back to the work that you did as Lieutenant Governor and making a real difference in trying to uncover this. But I want to make sure that I get it over the finish line. That’s not just identifying areas where we can streamline regulations, but also get it done.
And I just use one example: the seeker process. You heard me talk about this the first year. I said, we need to build more housing in this state. I have to have more housing, whether I’m in the North Country and we have a lot of hospitality businesses, the hotels, the restaurants, people are driving an hour and a half to go to their jobs because they can’t afford housing anywhere near these communities. Long Island — same thing out at the East End or other parts. I was just out there meeting supervisors out there. They’re starting to finally see that. I’ve been talking about this for years and I’m right. We need to build more housing for our workforce. And that’ll be a great lift for employers in Central New York. I just looked at some modular homes there that we’re looking to expand. They look like gorgeous homes by the way, you cannot tell the difference because I have 50,000 jobs coming to Central New York with Micron. So, all across the state, the demand is only growing. But there’s barriers and I’ve tried to take this on and we want to, right now in the process of streamlining our seeker rules, the environmental review process, which I know from my local government days was always the way you could say no to somebody, right? I know how to say yes, I know how to say no. I had 14 years of going over local applications for business development and housing projects. So, I know exactly what it’s all about. And so, I just want to make it easier. Let’s build more housing, get rid of some of those rules, or at least streamline them and make them common sense.
So, I put out the offer here today. Help us identify areas, and I’ll never compromise the health and safety of New Yorkers. So if you’ve got something that removes the restriction that does that, don’t waste my time. But if you have something, it’s time has passed, it’s obsolete, it’s duplicative, it’s redundant — bring it to us so we can actually have a thoughtful conversation about this. And I’m trying to expand not just housing, but I also have to expand our energy capabilities intensely. You wouldn’t believe the interest in our state now that we successfully landed Micron, and what an accomplishment that was — “People are still talking about how you landed Micron.”
I said, “it’s a secret, I don’t want other states to know.”
But a lot of it was personal engagement and showcasing how extraordinary New York is and what a great place it is. You’ll find an incredibly dedicated, hardworking workforce for you. But also the university system we have, the feeder system, our community colleges — all this plays into creating an environment that is hospitable for business. But then, if they don’t have the energy to power what they’re doing, then they have to go somewhere else. So I’ve taken that on as a personal challenge to me, because I want to get this right and give us all the advantages when it comes to recruiting businesses and helping our businesses here expand.
So, I look at nuclear. Now, you don’t hear that out of the mouths of a lot of Democratic Governors, but you should. It’s a renewable source. It’s clean energy. And I look at what happened when a project was shut down Downstate, Indian Point was shut down a few years ago, I’m the one who inherited that and the decommissioning. We lost 25 percent of the power that was going to New York City without a Plan B. So now, we have more trucks, diesel trucks, transporting liquefied natural gas and home heating oil over the roads. And guess what? Guess how emissions have gone up Downstate because of that one move. So I’m looking at the possibilities, opportunities for nuclear.
Back in June, I had a major press conference putting NYPA in charge of finding a place to do this and getting it going. And we already have four nuclear reactors, three sites in Upstate New York. And after I announced it, you would not believe the number of communities that came knocking on my door, “Can we have it in our community?” I won’t send it Downstate because that’s fine with me, I don’t need a battle, but Upstate wants this because they want to power the industries that are coming, whether it’s Edwards Vacuum, another supply chain element that we were able to recruit with 600 jobs after the Micron announcement. There’s so many great things happening.
I was just up here. Last week, Micro Bird, we were about to lose Nova Bus, big employer up near Plattsburgh. And we were able to find a company from Quebec that is now — despite them being real unhappy with our country. And I had to do a little smoothing over there that New York really loves Canada, “We’re not going to try and take you over. So you’re safe and we’ll forgive what you did in the war of 1812.” But I digress. Buffalo was burned to the ground. But I forget all that. But when we were able to land this opportunity to bring in a company from Quebec to take over that facility, not one employee missed a beat. They went from the fear of losing their jobs, 350 people, good-paying manufacturing jobs, about to lose them. And we structured a deal to say one day you’re working for Nova, the next day you’re working for Micro Bird and you miss nothing in between. And I was so proud to see we were able to accomplish it.
That’s just one example of where I get very involved, but also know that I can do more to promote businesses Upstate and Downstate as well.
But if I can get the power, if I can get nuclear going, if I can reduce some of the regulations associated with that — and I’ve had conversations with Washington about this. I told the President I need to have more of an all of the above approach to our energy solutions. I need you to leave offshore wind alone, because Empire Wind would power — it’s 1,500 jobs — half a million homes in Brooklyn powered by clean offshore wind energy. Next year we’re expecting it, then it was shut down like that. So we’ve had to have some conversations. The President knows I’m all in for nuclear. We’re working closely on that to reduce some of their regulatory timeframe as well.
So, once we get this underway, focus on hydro and all of our other opportunities, my friends. There’s no holding us back, because we have a world-class, educated workforce. We’re going to continue this. You saw what we did with community colleges in response to employers saying that they need more employees that would have skills, we identified some industry sectors where there were shortages of workers. You know this one, it’s health care. We have a huge shortage of health care workers. But also advanced manufacturing, the trades, clean energy as well as semiconductor manufacturing. So we are providing free community college education to any adult age 25 to 55 who will go back to school and maybe never entertained those fields and never could do it because of the cost. We’re covering the cost of their community college education where they can now step into a four year institution. Just by announcing this months ago, we have 16,000 students who are now going to community college. And they’re learning skills that are going to be beneficial to all of you as employers. That’s how we create the synergy we need between our workforce and our institutions as well as your workplace.
I’m working on housing, working on energy, working on workforce development, more recruiting, infrastructure projects — I love building things. We’re just going gangbusters; creating tens of thousands of jobs for anybody from Downstate, New York City.
I look at something like the bus station, the Midtown Bus Terminal. Have you ever been in there? Stay away. It’s scary. But it’s going to be gorgeous. It’s a $10 billion project, 6,000 jobs. But these are the kind of projects that — and Penn Station, people go by them year after year and just assume it always has to be that way, it always has to look like that. I believe in the preeminence of New York State and how we must showcase ourselves in a proud way where our infrastructure, our airports and our transportation hubs really gleam and look welcoming and magnificent and should be talked about.
And so, I’m on the cusp of more announcements along those lines, but every one of the projects — the Gateway Tunnel, that was locked up for years because governors couldn’t get along and the President wouldn’t get along and there’s all this, forget that, we have 10,000 jobs right there alone. So I’m all about creating jobs and opportunities and affordability as well.
You’ve told me to talk about affordability, number one issue, in addition to public safety. And I just hosted a law enforcement reception at the Governor’s residence this morning — that’s where I came from — honoring police officers and people in law enforcement, public safety all around the state, letting them know we believe in them. I have their backs because they have ours. We’ll always overfund them or fund them dramatically, $3 billion we’ve put into law enforcement.
And my friends, share this statistic. The numbers of crimes are declining extraordinarily. Going down dramatically. I’ll just put it that way, going down dramatically. And we are at lows. Whether it was the lowest crimes on the subway, July and August, in recorded history, some of the lowest murder rates in history, now we’re starting to record them. I’ve been all over Upstate helping with law enforcement grants to help our local governments. And it’s making a real difference.
We never rest on our laurels. We’re not done. More to do. But I’m telling you, compared to when I was first elected Governor, the numbers are staggering, heading in the right direction. I’m really proud of that. That’s foundational. No matter where your workplace is, your employees need to feel safe getting there. So we’re taking care of that. We focus on that.
As I mentioned, we have to get them housing. We have to get them reliable infrastructure to get to their housing. We have to make sure that we’re making these investments. But in the long term, I just, at a high level, want to make sure that all of you are proud to be in New York. And I’m here to say thank you. I know some of you’re even being recruited to other states. Say no, okay? Just say no. Remember that slogan from First Lady Reagan? Say no. Stay here. We’ve got a Governor who’s going to look out for us and make sure that we thrive. And that is my commitment to you because when you’re doing well, when you’re hiring, when you’re expanding that is a very good trajectory for New York.
And again, even our growth numbers in jobs, we have added 800,000 new jobs — private sector jobs. Everyone says, “Oh, you’re hiring in government jobs,” — private sector jobs since I became Governor. And our rate of growth is achieving the numbers where I’m satisfied, but not quite there yet.
I could go over a whole list of other projects. They’re exciting, and I’m proud of them, but know that I’m going to keep standing with you year after year and telling you that we are not done yet. We’re going to make sure that not only are you proud to be here, because I’m proud to have you here, that the rest of the country sees this and they’re really starting to.
I’ll close with one more thought because I find this one of the most exciting. What we have done in putting New York on the map as a tech hub, the word is out. I was at the Economic Club speaking yesterday. And it’s not just Micron. Not just Micron. But it is what we’re doing with artificial intelligence. Now, there’s a lot of fear associated with this, and it is a disruptive technology, but it is here and we can either embrace it or condemn it. And I say we embrace it because whoever harnesses the power of AI today will own the next generations of power. And I want that to happen here. And it is happening here.
I launched Empire AI. People were like, “What are you talking about?” And I want to thank the legislators for having the faith, when this first came to you for support, that we could invest State dollars leveraged with private sector dollars, leveraged with powering our universities all together and create the nation’s largest supercomputer dedicated to public good and research. Largest in the nation outside a private company. Guess what? It’s no longer a dream. It’s a $500 million investment and is already at the University at Buffalo. And I didn’t just do that as a hometown call. The power up there is plentiful with the hydroelectric power and I had plenty of space. But it is not just for Buffalo, it is for the entire state. And that’s the beauty of this.
And we have more people, more Ph.D. candidates, more faculty — I was out there last weekend — faculty members who came from California because they heard about this because they will have, at their fingertips, power that is not available anywhere else in the nation. And what are they doing with this? They’re solving society’s problems and health challenges and doing research and devising new therapies. Work that would’ve taken months and months to do, they can do in hours. And you know what? As great as that sounds we’re just about to launch, that was Alpha-Beta, 11 times faster than that.
So, that leads me to say that this is putting us on the map. In California, my friends in Silicon Valley are saying they wish their Governor had done this because we are the first in the nation to pay attention. And literally yesterday, I had a company that talked to me about a $50 billion AI investment in Upstate New York. So stay tuned.
But this is the scale that I’m talking about. And that may not be your industry, but it may power some facet of your industry someday. And you’re going to want that. And this is going to give you the competitive edge against everybody else. And that’s my job as Governor, to make sure that we have all the advantages. We know what we have. We know how great we are. But when we’re competing with the rest of the world in other states, we have to have tangible attractions to bring them here. And that’s exactly what I’m focused on.
So, thank you very much for listening. Thank you for believing in New York State. And again, very proud of your Governor. Thank you, everybody.
September 19, 2025
Albany, NY
Sources: Governor.ny.gov , Big New York news BigNY.com
Midtown Tribune News
