There has been much recent discussion about the State`s budget deIicit.

But the State`s

deIicit is only a symptom and as Governor, I want to address the illness. The essential
problem we Iace is a struggling national economy with high long-term unemployment
and underemployment rates. This economic crisis contributes to and is compounded by
government dysIunction in Washington, which Iurther roils the markets and erodes public
conIidence.

Our goal in New York should be twoIold: to Iashion a job-creating economic plan, and to
deIy political gridlock like we see in Washington and make government work to actually
implement the plan.

I believe there is a path Iorward Ior New York. Job creation can result Irom an eIIective
public private sector partnership Iocusing on inIrastructure development and tax
incentives. Political consensus can be Iorged by constructing a platIorm on Iair policy
rather than political ideology.

First, we must make a serious investment in this state`s ailing inIrastructure.

I propose creating the New York Works Initiative an inIrastructure Iund that will
Iinance the repair and development oI highways, bridges and major construction projects.

The Fund will promote innovative public-private partnerships with business and labor.

Second, we must promote economic development across the entire state by investing in
regional strategies. We have had great success this year with our Regional Economic
Development Councils, which have brought local leaders together to design innovative
blueprints Ior economic growth. We should commence a second round that builds on
these early successes.

Third, we should pursue a comprehensive gaming plan recognizing the reality that New
York is already in the gaming business and create destination gaming locations.
Through this plan, we can promote job creation and recapture revenue that is currently
being lost to other states.

Fourth, we must provide targeted help to a group that is being particularly hard hit by the
current economic crisis inner city youth.

These young people, who Iace unemployment rates as high as 40 percent, deserve
meaningIul job opportunities.

This is a crisis within a crisis, and we must do all we can to make sure all New Yorkers
are part oI our Iuture.

To address this crisis, I am proposing that we create a New York Youth Works program
to provide immediate job training, job placement, and tax credits Ior employers who hire,
train, and retain inner city youth.

Finally, an eIIective way to stimulate the economy and promote job creation is through
our tax system. We should pursue comprehensive reIorm oI our tax code to make it Iair,
aIIordable and one that incentivizes economic growth.

Most importantly, New York State government must act. I will be reaching out to
Democratic and Republican oIIicials in a spirit oI cooperation and compromise so that
together we can enact a real economic program that creates jobs.

Now is not the time Ior rigid partisanship but Ior eIIective leadership. New York State
government must rise to the occasion and lead once again.