Cuomo calls for $2 billion plan to fund pre-K

January 21, 2014, 2:26 pm

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New York voters will soon be asked to sign off on a $2 billion bond act to build facilities for a new statewide pre-kindergarten program, as well as pay for technology upgrades in the state’s school districts.

The proposed bond act, which will appear on the November ballot, was one of the education highlights of Gov. Andrew M. Cuomo’s budget presentation on Tuesday.

Also significant was a plan to spend $1.5 million over the next five years to make pre-kindergarten available in any school district willing to implement a program. New York would be the fourth state in the country to have a universal pre-kindergarten program.

“We don’t want to just do pre-K; We want to do it great and we will,” Cuomo said.

News of the pre-kindergarten program was welcomed by educators in Western New York, including Denise Dunbar, principal at Sidway Elementary School on Grand Island.

Sidway currently offers two sessions of half-day pre-kindergarten programs to about 36 students. But the need outweighs the school’s capacity. Sidway typically has anywhere from 100 to 125 families vying to get in.

The district is open to expanding the program, but that would require a bigger building, more teachers and extra support staff, all things that get a boost in the governor’s budget.

“The advantage of pre-K is that it teaches youngsters literacy skills, math skills and social and emotional skills,” Dunbar said. “But most importantly, it gets kids used to what school is all about. You set the students up for success.”

Cuomo’s spending plan for schools underscores the education priorities the governor has laid out since taking office. Along with the extra money for pre-kindergarten, the budget also allocates funding for after-school programs and teacher incentives.

Noticeably missing, however, is any mention of penalties for school districts that consistently fail to meet state academic standards, including Buffalo. Cuomo came out tough last year, calling for a “death penalty” for schools and districts that fail to show improvement. But he has failed to lay out any specific measures during his State of the State address two weeks ago or during Tuesday’s budget presentation.

Instead, Cuomo wants to put more money into programs aimed at getting students - particularly those in high needs areas - more time in school.

In addition to the pre-kindergarten program, his new budget includes spending $720 million over the next five years for after-school programs, with the hope that additional time for academic and enrichment activities will boost students’ academic performance.

The budget also includes dollars to recruit and incentivize high-quality teachers, including a $20 million fund that would allow teachers deemed highly qualified by the state’s evaluation system to claim a bonus of up to $20,000.

email: tlankes@buffnews.com, dswilliams@buffnews.com

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Former Lockport man accepts 15-year sentence for sex crimes

January 21, 2014, 2:26 pm

≫ Next: Brownfield program to be extended by another decade under Cuomo plan

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LOCKPORT – Andrew K. Peyatt of Bridgeport, W. Va., a former Lockport resident, accepted a plea bargain Tuesday for three sex offenses over a 17-year period. The deal limits his prison term to 15 years, with as many as 15 years of post-release supervision.

Niagara County Judge Sara Sheldon Farkas will make the sentence official April 1 for Peyatt, 56, who pleaded guilty to a reduced charge of attempted first-degree course of sexual conduct against a child for a series of incidents with a girl under age 11 in Lockport between Aug. 1, 1996 and July 28, 1997.

He also admitted to attempted first-degree criminal sexual act for forcible sex with a woman during a visit to Lockport in the summer of 2012, and to attempted dissemination of indecent material to a minor for emailing a naked photo to an underage girl in April 2013.

Peyatt, who is being held without bail, said he has lived in West Virginia for the past 27 years.

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Brownfield program to be extended by another decade under Cuomo plan

January 21, 2014, 2:28 pm

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The state’s Brownfields Cleanup Program would be extended by another decade, with an emphasis on redeveloping upstate sites, that will also include “important reforms to protect taxpayers,” according to Gov. Andrew M. Cuomo’s 2014-15 state Executive Budget unveiled Tuesday afternoon.

The Brownfields program – designed to “enhance private-sector cleanups” of industrial sites where potential contaminants, like hazardous wastes or petroleum, are impediments to redevelopment – provides tax credits associated with cleaning up and redeveloping such sites.

Brownfields dot the Western New York landscape once home to much heavy industry. Buffalo’s waterfront now attractive for development has numerous contaminated sites that require some level of remediation before they can be built upon.

Cuomo’s tax reforms include allowing remediation tax credits only for “actual cleanup costs” with redevelopment credits being “rationalized to only cover sites that have been vacant for over a decade, worth less than the cleanup costs, or are priority economic development projects,” according to the budget statement.

Peter Iwanowicz, the executive director of Environmental Advocates of New York, said his organization was working with Cuomo’s administration “for months” of the Brownfields reforms and was satisfied with their inclusion in the budget.

“Few areas produce economic development more than robust and targeted investments in New York’s environment,” Iwanowicz said. “Governor Cuomo has recognized the state’s brownfields program is critical to community revitalization and that for too long it has been an albatross for taxpayers, too costly and off-target for many areas.”

Iwanowicz pointed out that “thousands of toxic sites” need cleanup statewide and that the program has “not produced results for areas most in need of public investment – particularly Upstate, communities of color, or with high unemployment or poverty rates.”

The reforms should help that, Iwanowicz believes.

The governor’s budget also includes a fresh $100 million outlay continuing the state’s Superfund cleanup program, including $10 million to specifically address “municipally-owned Brownfields,” the statement reported. The $10 million would be made through the Environmental Restoration Program.

Meanwhile, the state’s Environmental Protection Fund is also poised to get a boost in the proposed spending plan.

A $4 million increase is proposed by Cuomo, upping the fund’s budget to $157 million. Included here are $85 million for open space programs, $58 million for parks and recreation and $14 million for solid waste programs, according to the executive budget statement.

Overall, funding for the state Department of Environmental Conservation would decrease by $43 million – from $919 million to $876 million – under the governor’s budget.

Although Iwanowicz lauded Cuomo for including the Brownfields reforms in his budget package, he said the Environmental Advocates would be seeking “more answers” about the spending plan’s funding to the state Department of Environmental Conservation.

“Environmental Advocates found last year that after years of deep cuts the agency had lost nearly 800 staff and was struggling across the board to implement health protections and enforce laws, including the Clean Water and Clean Air Acts,” Iwanowicz said. “The best standards and laws in the world don’t matter if there aren’t enough cops on the beat. DEC scientists need more resources to ensure that they can adequately protect our health.”

Morris Peters, of the state’s budget office, said the budgeted DEC reductions are primarily “a result of the completion of projects related to the Federal American Recovery and Reinvestment Act (ARRA) and the 1996 Bond Act.”

Further reductions, Peters pointed out, are due to “the transfer of IT positions to the Office of Information Technology Services and decreases in non-personal service and local assistance spending.”

Officials from the state Department of Environmental Conservation were still reviewing the proposed budget late Tuesday afternoon and reported they couldn’t immediately comment on its contents.

email: tpignataro@buffnews.com

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Buffalo man convicted of criminally possessing pistol

January 21, 2014, 2:29 pm

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A Buffalo man was convicted last week of second-degree criminal possession of a weapon after police saw him standing next to a City of Buffalo garbage tote with a loaded .22-caliber pistol in it.

An Erie County Court jury returned the guilty verdict against Glasco P. Rozier III, 24, of Domedion Avenue, following an eight-day trial.

Buffalo Police Officers Mark Hamilton and Michael Acquino saw Rozier get out of a vehicle Sept. 13, 2012, near his home, repeatedly look at them and then flee. They got out of their patrol car and found Rozier standing next to the garbage tote, where prosecutors said he hid the gun just moments before. DNA analysis confirmed Rozier had possessed the gun.

Rozier was remanded to the Erie County Holding Center without bail. He faces a minimum prison sentence of 3½ years and a maximum of 15 years when sentenced April 1 by Erie County Judge Kenneth F. Case, according to Erie County District Attorney Frank A. Sedita III.

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NT, Lyndonville men plead guilty to felony DWI

January 21, 2014, 2:30 pm

≫ Next: Lewiston man charged with burglarizing Falls building

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LOCKPORT – Men from North Tonawanda and Lyndonville pleaded guilty to felony driving while intoxicated in separate cases Tuesday in Niagara County Court.

Ryan T. Allgrim, 31, of Robinson Street, North Tonawanda, is to be sentenced March 18 by County Judge Matthew J. Murphy III. Allgrim was arrested after police responding to a harassment call on Falconer Street in North Tonawanda about 6 p.m. Sept. 16 saw Allgrim leaving a pickup truck. His blood alcohol content was measured at 0.28 percent.

James P. Smith, 38, of South Main Street, Lyndonville, was scheduled for sentencing April 1 by County Judge Sara Sheldon Farkas. Smith was arrested May 18 in Royalton, and his blood alcohol content was measured at 0.15 percent.

Deputy District Attorney Theodore A. Brenner recommended no more than a year in jail for Allgrim, and a six-month limit for Smith followed by 4 1/2 years of probation.

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Lewiston man charged with burglarizing Falls building

January 21, 2014, 2:32 pm

≫ Next: Buffalo teen charged with felony theft of jeans

≪ Previous: NT, Lyndonville men plead guilty to felony DWI

LOCKPORT – A Lewiston man pleaded not guilty Tuesday to a three-count indictment accusing him of burglarizing a vacant Niagara Falls building Aug. 31.

Gerald Welker Jr., 28, of Upper Mountain Road, is charged with third-degree burglary, possession of burglary tools and second-degree criminal mischief in connection with the break-in at a vacant building in the Highland Technology Park on Highland Avenue.

Niagara County Judge Matthew J. Murphy III issued a bench warrant for a co-defendant, Nicholas McConnaughey, 42, of Ferry Avenue, Niagara Falls, who didn’t appear at Tuesday’s arraignment.

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Buffalo teen charged with felony theft of jeans

January 21, 2014, 2:47 pm

≫ Next: Schools welcome Cuomo’s pre-K spending boost

≪ Previous: Lewiston man charged with burglarizing Falls building

LOCKPORT – A Buffalo teenager was arraigned on felony charges Tuesday in Niagara County Court in connection with the reported theft of a large quantity of jeans from the Saks Off 5th store in the Fashion Outlets mall in the Town of Niagara.

Terence M. Taylor, 17, of Wilkes Avenue, pleaded not guilty to third-degree burglary, fourth-degree grand larceny and possession of burglary tools.

Assistant District Attorney Kevin D. Canali said Taylor and a juvenile allegedly made off with more than $1,000 worth of jeans from the store Aug. 11.

That was two days before two other Buffalo residents were arrested in a similar theft of designer jeans from the same store. Both of those defendants – Derrick M. Nailor, 57, of Simon Street, and Dominique L. Bradshaw, 18, of Dutton Avenue – have pleaded guilty and are awaiting sentencing.

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Schools welcome Cuomo’s pre-K spending boost

January 21, 2014, 2:50 pm

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School officials are welcoming Gov. Andrew M. Cuomo’s budget proposal to fund universal prekindergarten programs, citing research that show children in such programs do better when they enter kindergarten and often throughout their academic careers. The academic boost is especially true for children from low-income backgrounds, many of whom are exposed to fewer words and less time reading than their more affluent peers.

As part of his budget unveiled this afternoon, Cuomo proposed $1.5 billion in state spending over five years to make pre-K available for all districts in the state.

Donald A. Ogilvie, district superintendent of Erie 1 BOCES, said most districts in Erie County do not have full-day, universal pre-K.

“Efforts have been made over the years to development universal pre-K, but at this point, very few districts have it,” he said.

At Sidway Elementary on Grand Island, Principal Denise Dunbar currently offers two sessions of half-day prekindergarten with one teacher in one classroom. There are 18 4-year-olds enrolled in each session.

Dunbar said her district is “very supportive” of more funding for universal prekindergarten – or UPK – that would help it serve more than just those 36 kids. “We know UPK works, and we know we need more of it,” she said. “Our district would fully embrace it.”

Pre-K enrollment at Sidway is determined by a lottery. Typically 100 to 125 families vie for the 36 spots, Dunbar said. Full-day, universal pre-K would mean those other families could be served, she said, adding that the program would need a bigger building, more teachers and a support staff.

Meanwhile, school administrators have done a lot of long-term data on students who went through Sidway’s pre-K program and those who did not.

“We know that the program works well for children,” she said.

The advantage of pre-K is that it teaches youngsters literacy skills, math skills and social and emotional skills. But most importantly, Dunbar said, “it gets kids used to what school is all about. You set the students up for success.”

The Buffalo Public Schools have had a full-day, universal prekindergarten program since the late 1960s, said Kathleen Fennie, supervisor of the district’s Universal Prekindergarten Department.

“We have at least two full-day, pre-K classrooms in every single elementary school” she said, except the former Pinnacle Charter school, which the district just took over last fall.

The district has 2,055 students in its full-day, universal prekindergarten program. Nevertheless, it has a waiting list of about 200 students, said Fennie. She said the school system would use the funding proposed by Cuomo to expand the program and whittle that list.

Even before the governor’s announcement today, district officials had obtained a state grant to build additional pre-K classrooms at Martin Luther King Multicultural School 39, West Hertel Academy School 94, Waterfront Elementary School 95 and Early Childhood Center School 61. That effort would add 125 seats to the program.

email: dswilliams@buffnews.com

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Grand Island man jailed for stealing air conditioner

January 21, 2014, 3:06 pm

≫ Next: Olean brewery looks to bring history to the future, and help build the community

≪ Previous: Schools welcome Cuomo’s pre-K spending boost

LOCKPORT – A Grand Island man, who stole an air conditioner from the Niagara Falls Walmart store April 12, was sentenced Tuesday to a year in Niagara County Jail by State Supreme Court Justice Richard C. Kloch Sr.

Michael G. Kargatis Jr., 50, of Bedell Road, had pleaded guilty to a reduced charge of attempted third-degree robbery.

Kargatis allegedly shoved a shopping cart into the path of a pursuing employee as he fled the store. Kloch has ordered Kargatis never to enter that Walmart again.

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Olean brewery looks to bring history to the future, and help build the community

January 21, 2014, 3:09 pm

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OLEAN – Three beer lovers are planning to bring new life to the old Olean Brewing Co. buildings that were shut down during Prohibition.

Jaye Beattie, Gregg Piechota and Nicholas Bohdanowycz, are looking to bring brewing back to the Greene Street property.

They have been operating Four Mile Brewing, a small craft brewery for their friends, on Four Mile Road in Allegany. The friends liked their beer so much that the three decided to move to a larger, better location and to create a production line – and the Olean Brewing Co. buildings seemed to be the logical place.

The buildings have been used for a variety of purposes – including storage – since the days of the 18th Amendment. One of the buildings currently is vacant, and the other houses furnishings that once were in the former Castle restaurant and hotel near the St. Bonaventure University campus.

The buildings were built in 1907 to support the growing need for beer in the industrial city of Olean.

If all goes as planned, the local brews of that age will be replaced by Four Mile Brewery’s packaging lines and fermentation tanks after 96 years.

The smaller building will house the production line as well as the brewing equipment. Behind a large window in the 202 Greene St. building, visitors would get a feel for the beer-making process as they watch it happen.

As planned, when visitors walk into the shop, they will be virtually transported into a time before Prohibition. They also will be able to get a New York City deli-style sandwich, served on a piece of parchment paper.

And, they’ll be eaten in an area that will be designed to look like the pubs of the past. An industrial look, complete with distressed brick and metal tables in the small dining area, is planned.

Outside, the developers are looking to have a hops garden with benches in the walkway and they plan on a small, family-friendly beer garden.

The facility has one of the best vantage points for the Fourth of July fireworks in Bradner Stadium. Plans are being laid for that viewing experience.

Piechota, an avid runner, has started laying the groundwork for a citywide running club. The three men have an environmental bent. They look hard to find ways to help in making the city a better place, and that includes the river.

“We want to be an active partner in the community,” Piechota said. “Sure, we want to have some of our own events, but we want to be part of the community. We want to be part of what’s happening right here.”

In that vein, Piechota said he and his partners are not looking to open a bar. Four Mile Brewing is a production facility, he said. To become a bar would hurt their local sales to other establishments. Being a bar would also hurt the neighborhood feel, he continued.

As the brewery opens, yes, there will be tastings, and yes, people can get a growler of their favorite flavor. The place will close by 10 p.m. On most nights.

“If we have the Sabres game on, or a football game that goes a bit past that, we will stay open until the game is done, but then we are closing shop,” Piechota said.

All of the action seems to be going on in the smaller building. What about the behemoth, 18,000-square-foot former brewery behind it? For the time being, it will be storage for materials. Plans are in the works to use it for other things, but those are not fully disclosed at this time.

The men hope to have the buildings ready for operation by late fall, with hopes of hitting the Ellicottville Beer and Wine Festival.

Operations are expected to grow to provide sales to private citizens walking in to get beer. After that happens, Piechota said, expansion to the Olean and Buffalo markets is the next step. Eventually, having distribution in a 600-mile radius is planned. Once at full operation, Piechota said, he and his partners are looking at potential employment of 10 to 15 people.

To make this whole thing a reality, a couple of hurdles remain. The next is a public hearing at the Olean Planning Board meeting, set for 7 p.m. Jan. 27. If that is successful, plans can move forward for making a new life for the old the Olean Brewing Company buildings.

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E&E fires president as shake-up continues

January 21, 2014, 3:17 pm

≫ Next: Astronics tries test services again as it agrees to buy California unit

≪ Previous: Olean brewery looks to bring history to the future, and help build the community

The Neumaier family’s fall from power at Ecology & Environment is complete.

Kevin Neumaier, the son of the company’s co-founder, was fired Tuesday as E&E’s president, five months to the day after he was stripped of his post as chief executive officer in a shake-up led by the company’s other co-founders that shattered the 43-year partnership that had guided the Lancaster environmental services firm.

Neumaier’s ouster was not a surprise. The company’s chairman, co-founder Frank Silvestro, has publicly blamed members of the Neumaier family, from the former chairman, the late Gerhard J. Neumaier, to his son, Kevin, and his nephew, Volcker Neumaier, for what he described as secretive and risky dealings in China that failed to pan out and led to the company taking a $7 million write-off last year. The Neumaier family also voted its shares against Silvestro’s eventual reappointment to E&E’s board of directors last week.

In Neumaier’s place as president, E&E named Gerard A. Gallagher III, a 33-year E&E veteran who was named a senior vice president in 2008 after spending most of his career in the company’s regional operations in the United States and abroad.

“Our markets are evolving quickly,” Gallagher said in a statement. “So must E&E. This is a period of profound change, and our efforts to align ourselves toward new markets and services are exciting.”

Gallagher, in comments to E&E’s shareholders during the company’s annual meeting last week, said the firm is focusing on projects that will provide a sustainable base of business.

Gallagher cited the work E&E is doing in New York to develop regional sustainability plans for certain upstate regions as the type of profitable projects that the firm can thrive with.

“These projects are right up our alley,” he said. “They’re big. They’re high- profile.”

Gallagher also cited work that the company is doing to help New York communities recover from natural disasters, such as flooding and Superstorm Sandy. “The idea here is to do it smart and with resilience, so these communities can take the punch better in the future,” he said.

He also cited the work that E&E has done on a master plan at Fort Hood to help the U.S. Army better manage the 4,000 buildings on the base. “More efficient use of those buildings saves the Army a huge amount of money,” he said, noting that E&E expects to receive a federal grant do to pilot testing at a couple of other bases.

E&E also named Fred J. McKosky, another senior vice president who has spent the past 35 years working at E&E, to the newly created post of chief operating officer. And it appointed Cheryl A. Karpowicz, E&E’s senior vice president of development, to the board of directors of its subsidiaries in Peru and Chile.

email: drobinson@buffnews.com

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Astronics tries test services again as it agrees to buy California unit

January 21, 2014, 3:23 pm

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≪ Previous: E&E fires president as shake-up continues

Astronics Corp.’s first foray into the electronics test systems business didn’t go well, but that isn’t stopping the East Aurora company from delving into the industry again.

Astronics, in a move to bolster its long-struggling test systems unit, said Tuesday that it has agreed to buy EADS North America’s Test and Services Division in a deal that ultimately could be worth about $63 million.

The EADS business, which has about 210 employees at its facility in Irvine, Calif., provides highly engineered automatic test systems and instruments for a variety of industries, from the semiconductor and consumer electronics fields to the commercial aerospace and defense sectors. The business also makes and designs test equipment under the Racal and Talon brands.

The business had about $70 million in sales last year, with revenues for the current year expected to reach about $100 million, and possibly a little more. And unlike Astronics’ existing test systems business, which has consistently lost money since its acquisition in 2009, company executives expect the EADS unit to be profitable from the start.

“We believe there is a strong long-term potential in the test market, even though our experience in the test market has been something different,” Peter J. Gundermann, president and CEO of Astronics, said during a conference call.

Gundermann said the strengths of the EADS business should complement the abilities of Astronics’ existing test systems unit in Orlando, Fla.

“What we’re good at is the software side of the test business, while Irvine is better on the hardware side,” he said. “We like the EADS business also because it has a proven ability to diversify and find new markets.”

Those diversification efforts have left the EADS unit with a sales base that got more than half of its $70 million in sales last year from commercial customers – a figure that is expected to approach 70 percent this year, Gundermann said. In contrast, Astronics’ test systems business gets nearly all of its roughly $10 million in annual revenues from military customers.

With a backlog of orders approaching $120 million, Gundermann said, forecasts that the EADS business could reach $100 million in sales this year are on solid footing, although he said the unit will need to continue winning new contracts to maintain its sales at that level in future years.

“It’s a lumpier business, and it’s a business that has transitioned more easily away from the defense business,” he said. “The challenge for this business will be what happens in the medium and the long term.”

Tyler Hojo, an analyst at Sidoti & Co., estimated that the purchase price of $53 million plus a working capital adjustment that is expected to be about $10 million, values the EADS business at around four times its cash flow – a valuation that he described as low.

“It’s a business that has not had much of a track record outside the defense business to merit a higher multiple,” Gundermann said.

Astronics branched out into the test systems business five years ago with its acquisition of DME Corp., an Orlando-based company that makes weapons and communications test equipment, training and simulation devices and aviation safety solutions. But that deal ran into trouble almost immediately, when DME failed to win a major defense contract that it had counted on, leading to a steady decline in its sales, which had reached as high as $86 million before the deal. The test systems business also has been a drain on Astronics’ profits, steadily losing money even as Astronics officials restructured the business in an effort to cut costs, while still retaining the unit’s expertise.

Astronics’ existing test systems business lost $2.9 million through the first three quarters of last year on $7.2 million in sales.

The EADS deal, which Astronics is paying for with cash and bank borrowings, is expected to close next month, assuming the acquisition receives anti-trust clearance from federal regulators.

Once EADS is in the fold, Gundermann said, he hopes the capabilities of both companies can help Astronics’ bulked-up test systems business win work on bigger projects, possibly even as a subcontractor on very large contracts.

email: drobinson@buffnews.com

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Verizon to buy Intel Media

January 21, 2014, 3:30 pm

≫ Next: Schumer pushes bill to slash tax on craft brewers

≪ Previous: Astronics tries test services again as it agrees to buy California unit

LOS ANGELES – Someday, the full lineup of channels from Verizon’s FiOS TV service may be available on your phone.

That’s the vision outlined Tuesday after telecommunications giant Verizon Communications Inc. announced that it is buying Intel Media, a division of Intel Corp. that’s been preparing to launch a service that streams TV channels over the Internet.

Verizon said the acquisition will help it accelerate the development of a next-generation video services based on Internet protocols and reduce the cost of building its own. Currently, Verizon FiOS video subscribers can stream some live channels over mobile devices, but the selection is limited and most channels can’t be viewed outside the home.

Terms of the transaction were not disclosed. Verizon said it would offer jobs to most of the 350 people at Intel Media.

The company said that with its pending purchase of Vodafone’s stake in Verizon Wireless, which gives it complete control by Feb. 21, it will create a better TV product that works on mobile devices.

On a conference call with investors Tuesday, Francis Shammo, Verizon’s chief financial officer, said the company is positioning itself to compete in “the whole mobile-first world in video.”

Gerard Hallaren, an analyst with Janco Partners Inc., said the acquisition prepares Verizon for the day when all TV signals are delivered via the Web, in what is come to be known as an “over the top” service like Netflix, Hulu or Amazon Instant Video.

Today, full-pay TV service requires being in the service area of various cable TV or telecoms providers. An “over the top” service would allow Verizon to provide a TV package to customers outside of its service area.

The purchase was announced the same day Verizon reported fourth-quarter net income of $5.07 billion, or $1.76 per share, reversing a loss of $4.23 billion, or $1.48 a year ago, as revenue rose 3 percent to $31.07 billion.

New York-based Verizon said overall service revenue rose 8 percent to $17.7 billion.

The company added 1.7 million net retail wireless connections during the quarter, excluding acquisitions and adjustments. Of that total, 1.6 million were connections that involved monthly service contracts.

As of Dec. 31, Verizon had a total of 102.8 million retail connections, marking a 5 percent increase over the same time a year ago. The 2013 total included 96.8 million connections with monthly contracts.

Shammo said that the company got a big boost from new contracts for tablet service, which totaled 790,000 and marked the largest quarterly total since tablets were first introduced in 2010.

Meanwhile, Verizon’s overall population of retail wireless subscribers increased 4.5 percent to 35.1 million, with each customer having an average of 2.8 connected devices.

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Schumer pushes bill to slash tax on craft brewers

January 21, 2014, 11:16 am

≫ Next: Westfield teacher cried when hearing of Grammy win

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Sen. Charles E. Schumer stopped at Pearl Street Grill & Brewery on Tuesday to detail proposed tax-cutting legislation that would boost Buffalo’s burgeoning craft-brew industry.

“Small breweries throughout Buffalo, like Pearl Street Grill & Brewery, not only brew great beer, they also pour jobs into the community,” the New York Democrat said.

“By cutting taxes for these small businesses, we can help breweries buy new equipment and hire more people to boost business, and truly allow them to capitalize on the growing craft beer culture in Western New York.”

Under the Small BREW (Brewer Reinvestment and Expanding Workforce) Act, the current excise tax rate of $7 per barrel would be cut to $3.50. The tax applies to the first 60,000 barrels brewed each year.

Schumer joined Earl Ketry, owner of the Pearl Street and Pan-American breweries; Ethan Cox, owner of Community Beer Works; Tim Herzog, owner of Flying Bison Brewing Co.; Jeff Ware, owner of Resurgence Brewing on Niagara Street; and Matt Kahn, owner of soon-to-be-opened Big Ditch Brewing on Ellicott Street.

Pearl Street produces 2,800 barrels of beer annually, according to Ketry, who hopes to boost that number to 3,500 barrels. In addition, Ketry said Pearl Street employs 325 workers.

Under the Small BREW Act, the brewery would save more than $9,800 per year in excise taxes.

“Sen. Schumer’s legislation not only gives a boost to our business, it also helps lift the entire Buffalo economy,” Ketry said. “Every dollar we can save in federal excise tax we can reinvest in hiring more employees and growing our business.”

Herzog, a veteran of the local craft-brewing scene, described the small-brew industry as a capital-intensive business for a number of reasons.

“The equipment is expensive, employees must be specifically trained to work in a brewery, and fresh brewing ingredients can break the budget,” Herzog said. “When you add sales tax and excise tax on top of that, it’s tough to keep the doors open.”

Craft brewers also would be getting a shot in the arm from the state budget proposed Tuesday by Gov. Andrew M. Cuomo.

To increase the availability of locally grown hops for the state’s growing craft-brew industry, the spending plan would continue $40,000 for a program to evaluate and test hop varieties throughout the state.

As of last summer, there were 131 licensed breweries in New York State. More than 100 are microbreweries, defined as having an annual production of less than 15,000 barrels.

Nationally, according to trade publication Beer Marketer’s Insights, barrels shipped have more than doubled in the last decade. Craft beer now makes up nearly 7 percent of the U.S. beer market.

The Small BREW Act also would cut the tax by $2 on the next 1,940,000 barrels produced.

Ware, a native of Orchard Park, is opening Resurgence Brewing in a former factory at 1250 Niagara St.

“As a startup brewery, we have limited resources,” Ware said. “Cutting the excise tax would put money back in our pocket that we can spend on equipment and staff. This is what we need to grow our business.”

email jkwiatkowski@buffnews.com

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Westfield teacher cried when hearing of Grammy win

January 21, 2014, 1:27 pm

≫ Next: Pettine standing taller in Browns' coaching search

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He did it.

Kent Knappenberger, a Westfield Academy and Central School District music teacher, was named Tuesday as the recipient of the inaugural Music Educator Grammy Award, beating out 30,000 other music educators to win the honor.

“I cried when I heard the announcement,” Knappenberger told The News, shortly after landing in Los Angeles to commence several days of whirlwind activities relating to his award, all culminating in his attendance at the televised ceremony on Sunday evening.

Knappenberger, who said he was surprised when he was nominated for the honor by a pair of former students and the parent of a third former student, said he was even more surprised to make the top 25 list of finalists. By the time he realized he’d made the final round as one of 10 educators nationwide in the running for the Grammy, his surprise had morphed into a bemused incredulity.

And then, during a segment tucked into Tuesday’s CBS This Morning show, the unbelievable transpired: Knappenberger’s years of hard work and dedication in his small corner of the world were honored on a national level.

He might be shocked, but those who have studied with him, worked alongside him, and observed him in his daily environment, saw it coming.

“Having watched Kent at work over the past 18 months, I have to say, I’m not surprised at all,” said Westfield Superintendent Dave Davison. “His passion for what he does, the very person he is, the love and concern he has for his students, the life in his eyes when you encounter him every day – Kent has a gift, and he is able to share that gift in an incredibly meaningful way. If ever there was a person who deserves such an honor, well, he’s most definitely that person.”

Knappenberger’s reaction to the news is confirmation of his reputation among his students and fellow educators as a humble man who takes joy in sharing his love for music with others.

“It was very humbling,” he said. “I’m proud to be part of a profession filled with gifted, capable music educators. When I heard the news, I just kept – and I keep on – thinking that I really would like to represent them as best I can. I am so grateful for the opportunity to do that.”

Knappenberger will be honored during a special awards presentation Saturday at the Recording Academy’s Special Merit Awards Ceremony & Nominees Reception, where he will potentially rub shoulders with recipients of this year’s Grammy Lifetime Achievement Awards, among them Kraftwerk, the Isley Brothers, Kris Kristofferson, and the two surviving members of a certain band from Liverpool, England that made a big splash in the states 50 years ago.

Is Knappenberger nervous about bumping into a Beatle?

“To be honest, I hope that I can see a classmate of mine from graduate school, who is nominated,” he laughed. “But I plan on taking it all in!”

In addition to the prestige associated with claiming the very first Music Educator Grammy in the history of the Recording Academy, Knappenberg also claimed a $10,000 honorarium for Westfield Academy. Asked what the school might have that money earmarked for, Davison said he had “absolutely no idea” yet.

“But it’s a good problem to have,” he laughed.

Knappenberger has a plan in place, though.

“There are some instruments we would like to purchase, and some sheet music,” he says. “And we also need to help finance an experience for the kids. We’re going to see ‘Newsies’ on Broadway in April!”

In the news release from the Recording Academy and the Grammy Foundation announcing Knappenberger’s Grammy win, President and CEO Neil Portnoy called the Music Educator Grammy an award meant “to highlight the extraordinary influence of music teachers on their students in and beyond the classroom.”

“Many musicians would not be expressing their gift for creativity had it not been for the dedication and encouragement of a music teacher who inspired them to pursue a professional career,” Portnoy’s statement continued.

When asked what he sees as the greatest possible good to come from this prestigious honor, Knappenberger was typically self-effacing in his response.

“I would like to take the fullest opportunity to communicate the power of what music can do for kids - all kids,” he says. “And also, I hope that this will highlight the success of rural education.”

email: jmiers@buffnews.com

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January 21, 2014, 12:16 pm

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January 21, 2014, 3:26 pm

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Raw numbers: School aid by district

January 21, 2014, 1:25 pm

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Cuomo’s budget raises school aid 3.8 percent, imposes property tax restraints

January 21, 2014, 2:25 pm

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ALBANY – Gov. Andrew M. Cuomo today proposed a 2014 state budget that boosts state aid to public schools by 3.8 percent, imposes new property tax hike restrictions on localities, cuts some individual and business taxes while raising some fees and commits the final $680 million of the billion dollar economic development program he unveiled two years ago for the Buffalo area.

Exactly how the $680 million for the Buffalo Billion program will be spent, or if it will all be earmarked this year, is uncertain and likely would not be known until well into the year when other possible projects are identified.

The fiscal plan, coming in an election year for Cuomo and all state lawmakers, proposes a total tax cut package of $2 billion, though only $500 million of that will come in the 2014-15 fiscal year.

The tax cuts, which include corporate income tax reductions, a $25 million reduction for upstate manufacturers and freezes property taxes for homeowners in localities that meet certain conditions, such as keeping the overall tax levy within the state’s tax cap program. The property tax freeze would be eligible for all school districts and the Big Four cities, including Buffalo, and available in all other localities in 2015.

Cuomo said his property tax program would have the state provide financial relief to homeowners if the localities in which they live agree to abide by the state’s 2 percent property tax cap in the second year. In the following three years, homeowners will get the tax relief only if their local governments show how they will save one percent in operating costs in each of the three years.

He cited Erie County, noting how it has 1,044 units of local governments, including villages, school districts, sewer, water and fire districts. He said those Erie County governments charge $1.6 billion in annual property tax levies. Saving three percent over three years in all those Erie County local units will cut their expenses by $48 million, Cuomo said, adding that they can make those savings by consolidating and sharing services with neighboring local governments.

“It’s can’t be that there aren’t economies of scale,’’ Cuomo said.

Seeking to avoid a nasty potential fight with Bill de Blasio, the new mayor of New York City, Cuomo is proposing to spend $1.5 billion in state funds over five years to let schools offer prekindergarten programs on a voluntary basis, according to an administration official who spoke today on condition of anonymity. The mayor has been calling for a tax hike on wealthy people, a move Cuomo opposed even though a couple years ago he extended a tax surcharge on such residents.

Cuomo wants to spend $720 million over five years to fund an expansion of after-school programs for public school students. The money will partially come from gamblers at the four new casinos expected to be awarded later this year and set to open as early as next January.

The governor’s overall funding plan for schools calls for a $807 million increase, or 3.8 percent from the current year. That takes overall state aid to the state’s 700 school districts to $21.9 billion.

The increase level is well below the $1.3 billion that the state Board of Regents say is needed and the $1.9 billion sought by several advocacy groups. Precise district-by-district funding allotments will not be available until later this afternoon.

The overall budget will total $137.2 billion, up from $135.3 billion this year, on an all funds basis, which excludes “extraordinary" aid from the federal government for Hurricane Sandy relief efforts that skewed the numbers.

On a state funds basis, which is the main portion taxpayers finance, the budget plan requests $92.3 billion, up from $90.2 billion this year.

About 5 percent of the budget goes just to servicing past borrowings. Cuomo wants to add to the state’s debt level by asking voters this fall to approve $2 billion in borrowing to fund new technological advances in schools as well as to create new classroom space for the additional nursery school offerings. Details on how the money will be spent have not yet been made public.

A number of funding plans are back-loaded, which critics say is a fiscally dangerous method that does not take into account surprises in the economy that could greatly affect the ability of politicians today to pay for their future promises. Of the $1.5 billion pre-K program, for instance, only $100 million is expected to go out the door this year, the Cuomo budget proposes.

After some sour publicity with his plan in the past to cut state funding to Roswell Park Cancer Institute, Cuomo’s budget this year proposes to maintain the hospital’s state funding at $103 million “by replacing an expiring $25 million capital grant with a commensurate amount of local assistance funds." Officials were not available to explain the provision.

The budget plan also envisions an overall increase in state aid to higher education, but seeks to cut operating assistance to the State University of New York.

Cuomo has already said he will ask voters this fall to approve a $2 billion borrowing to fund new technological advances in schools as well as to create new classroom space for the additional nursery school offerings.

The governor’s budget also calls for the creation of a hotline at a state ethics agency he controls for government employees to report cases of workplace sexual harassment against them. Last week, The Buffalo News reported that several state legislators, in the aftermath of the sexual harassment allegations made against former Assemblyman Dennis Gabyrszak of Depew, wanted a place outside of the Legislature’s internal operations where victims could report sexual harassment without fear of retribution by their bosses.

The governor was silent, however, on proposals by Assembly Democrats to hike the minimum wage every year pegged to the inflation rate, or on calls by a small group of Senate Democrats to let parents lock in current college tuition levels for their children’s future education, or on Senate Republican proposals to change or kill off a couple thousand regulations they say kills job creation efforts.

Cuomo said his overall budget reduces spending from prior projections by $2 billion, including $1.6 billion in local assistance by such steps as eliminating automatic increases for private health and human service entities that perform front-line care on behalf of the state.

The Medicaid health insurance program will also see a 3.8 percent state aid increase, and Cuomo also wants to spend – presumably through borrowing – $1. 2 billion on improvements for health care facilities.

While he is cutting taxes, he is also raising taxes, including assessments on cable tv companies to finance certain programs at the Department of Health and will either increase, keep intact or make permanent fees on everything from pesticide application companies to oil and gas production firms. He also proposes to “close the resident trust loophole," which the one budget briefing book supplied to reporters this afternoon did not explain.

Cuomo also wants to eliminate the cost-of-living adjustment for the Enhanced STAR property tax program, which is used by qualified senior citizens. The STAR tax break has been adjusted every year since 2003 and Como will keep the eligibility level at $81,900 in 2014 but kill the cost-of-living adjustment after that.

Cuomo also put into his budget a plan to have taxpayers fund the campaigns of politicians. Donations up to $175 to a campaign would be matched at a $6 to $1 level by taxpayers.

An existing program that seeks to clean and re-develop old industry sites known as brownfields would be changed to reduce costs; tax breaks under the Cuomo plan would only go for cleanup efforts and a property would have to be vacant for 10 years to qualify.

The budget also freezes at current levels the main state aid funding for localities, stiffens penalties for repeat drunk drivers and people under the age of 21 who text while driving, makes cuts to transportation programs and gives a $2.3 million increase to cash-strapped upstate transit programs to the $175.9 million they now receive.

email: tprecious@buffnews.com

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Rep. Reed holds Q&A with Sheridan veterans

January 22, 2014, 1:56 pm

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SHERIDAN – Local veterans had a question and answer session with Rep. Tom Reed (R-Corning), Tuesday at the Sheridan VFW Post on Route 20.

Reed told the group that he co-sponsored legislation that is designed to prevent a reduction of benefits for medically retired military personnel and their families. He also talked to the veterans about the new appropriations that may help reduce the back-log in veterans benefits. He told veterans that he has a staff member dedicated to answering veterans questions and encouraged them to contact his office for help.

The consolidated appropriations bill recently passed in the House includes $140 million for information technology upgrades to help the VA meet its self-set goal of ending the disability compensation claims backlog by 2015. An additional $88 million has been designated for the Board of Veterans Appeals intended to help reduce the backlog of pending claims and $10 million in funding to train claims processors.

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