North Country Assemblywoman Addie J. Russell, D-Theresa, says the paltry results of the Start Up NY program demand further scrutiny.

Russell says state officials need to rethink the administration of its Start Up NY program to better serve areas of the state like the North Country.

Assemblywoman Russell, a member of the New York State Assembly's Committee on Economic Development, Job Creation, Commerce and Industry, said a session last week that included an appearance by Empire State Development Chief Executive Officer Howard Zemsky didn't provide any surprises.

There are currently no businesses taking part in the Start Up NY programs at SUNY Potsdam and SUNY Canton.

"The program really needs to be rethought and administered differently if we expect all SUNY campuses and regions of the state to benefit," Assemblywoman Russell said following the meeting.

"The large SUNY schools that already have strong business relationships seem to be the only colleges and universities in the state system benefitting from the Start Up NY program," she charged.

"The testimony at the committee meeting demonstrated that incubators are producing far more jobs at less cost and perhaps that is where our economic dollars should be concentrated," Assemblywoman Russell noted.

She pointed out Clarkson has experienced success with its business incubator program. "I think the SUNY system could take a page out of their book," she said.

Assemblywoman Russell concurred with Mr. Zemsky's assessment that the North Country had fared well through the regional economic development council funding, although she suggested it was simply "catchup" for one of the most economically challenged areas of the state.

She said she was also grateful for the support Empire State Development provided after Alcoa announced it planned to shut down its smelting operations in Massena last year. Alcoa reversed its decision and agreed to keep the smelter operating for an additional two years after receiving a funding package from the state.

But she said the paltry results of the Start Up NY program demanded further scrutiny.

The Start Up NY program offers new and expanding businesses the opportunity to operate tax-free for 10 years on or near eligible university or college campuses in New York State.

State officials have said businesses benefit when they can partner with the colleges and universities and have direct access to advanced research laboratories, development resources and experts in key industries.

Companies participating in Start Up NY are required to be a new business in New York State or an existing New York business relocating to or expanding within the state, agree to partner with a New York State college or university and create new jobs and contribute to the economic development of the local community.

A report issued by Empire State Development over the July 4 weekend revealed the program had led to the creation of 408 jobs over its first two years. Lawmakers on both sides of the aisle have questioned whether those job numbers justify the cost of the program.

Assemblywoman Russell had raised concerns about the program last month in the wake of the report.

She said at that time she didn't feel the SUNY schools in the North Country had the resources they needed to make a committed effort to utilize Start Up NY on their campuses.

The assemblywoman noted she would like to see the governor look at including funding in the SUNY budget for dedicated program personnel and academic program investments for the Start Up NY if she was going to be able to continue to support the program.

Under questioning from Assemblywoman Russell at last week's committee meeting, Mr. Zemsky said over $50 million had been spent on advertising the Start Up NY, with the majority of the commercials airing in 2014, with approximately 40 percent of those dollars being spent on ads aired in New York State. He testified the advertising campaign was necessary to change the perception that New York State is not a good place to do business.

Assemblywoman Russell suggested Start Up NY advertisements had flooded the airwaves during the 2014 election cycle.

"My constituents are eager to find out what that $50 million turned into. At this point we are not seeing a lot of return on that investment in the North Country. Folks in my area are looking for jobs, not perceptions," she told Mr. Zemsky.

The SUNY personnel at Potsdam and Canton administering the Start Up NY program, for example, also handle a myriad of other responsibilities assigned to their positions.

She again called at the hearing for the state to provide additional funding to SUNY schools for personnel to appropriately administer Start Up NY on their campuses if the program is to continue in its current mode.

Assemblywoman Russell acknowledged she would find it challenging to continue to support the program without those changes.

"I'm not interested in throwing good money after bad when we have such paltry results. I'm not sure if we shouldn't be doing a complete rethink of where this program is housed and how it is operated," she stressed at the committee meeting.