Cuomo suggests tying funding to innovation

Andrew Cuomo, the Governor of New York State, has recommending tying the amount of funding New York institutions receive to performance under the Governor’s Start-Up NY programme.

The programme grants businesses ten years of tax free operation if they set up a base in or near a university or college in the state, aimed at launching more spin-outs and startups in the area. Under Cuomo’s latest proposals, 10% of funding for institutions can be withheld if they do not submit performance improvement plans. At the same time, Cuomo is also suggesting earmarking $30m in bonus funding for institutions which succeed in developing their ecosystems.

The state’s Division of the Budget said that withholding of funds would only happen if an institution failed to submit a plan, and would not be affected by the ensuing performance.

Morris Peters, a spokesperson for the Division of the Budget, said: “We’re building on success by extending the concept across SUNY and CUNY campuses, and we’re supporting it with $30 million in new incentive funding to reward colleges who complete approved performance improvement plans.”

However, the plans are being met with opposition. Deborah Glick, a Democratic member of the New York State Assembly, said that tying funding for institutions to an economic development programme could create a problematic conflict of interest.

“At a time when we’re talking about how important ethics are, I don’t think that it’s appropriate changing the role of a college president into a venture capitalist,” said Glick. Speaking on Cuomo, she added: “For someone who is so committed to getting things done and doing things in an efficient fashion, I thought that was very bizarre.”