By Jimmy Vielkind
New York Gov. Andrew Cuomo said the state would expand broadband internet access, create public health training for citizens and support the conversion of vacant commercial space into housing as the Empire State strives to overcome the coronavirus crisis that has taken a stunning economic toll.
The Democratic governor laid out the agenda items during his annual State of the State address on Monday. Mr. Cuomo used war metaphors to describe the effects of the pandemic on the state, where the disease it has killed nearly 32,000 people.
"Covid created low tide in America, and the ugliness that lurked below the surface was exposed for all to see," Mr. Cuomo said. "We will win the Covid war, and we will learn from the experience."
The State of the State is normally a chance for the governor to speak with lawmakers and assemble guests from around the state for a kind of annual homecoming. This year the speech was virtual: Mr. Cuomo spoke for around 45 minutes, half the length of last year's presentation, from the empty, mural-adorned "War Room" of the state Capitol.
The governor will expand on his proposals in three additional online speeches this week, a state official said, focusing on infrastructure spending and developing clean energy.
To reinvigorate the economy, Mr. Cuomo said the state would look for ways to rapidly reopen restaurants, theaters and cultural sites such as museums to patrons who either test negative for the coronavirus or have been vaccinated against it. But the governor acknowledged that changes to the nature of work could outlast the pandemic, and proposed an expansion of telehealth services and repurposing commercial office space.
"The housing problem in our cities has gotten worse. But the crisis of growing vacancies in our commercial property provides an opportunity," Mr. Cuomo said. He proposed creating "supportive and affordable housing" in these spaces.
The overall vacancy rate in Manhattan increased to 13.3% in the third quarter of 2020, the highest number in 24 years, according to a report from Cushman & Wakefield, a real estate services firm. Kathryn Wylde, chief executive of the business group Partnership for New York City, said that many companies in the city haven't changed their existing leasing arrangements but she estimated that only 10% to 15% of employees are working in offices.
Repurposing space could be a lengthy process, said Jay Martin, executive director of the Community Housing Improvement Program, a residential landlord group. He said the state should "work on a better system that protects tenants, while allowing owners to invest in clean, safe, affordable housing."
Real Estate Board of New York President James Whelan, who represents developers, applauded the governor. "New York will remain a global commercial hub by instilling a 24/7 environment in its central business districts, which will simultaneously strengthen its retail and small business sectors, create 'walk to work' environments and provide much needed housing and affordable housing," he said.
Ms. Wylde noted that New York City officials would need to approve any zoning changes affecting Manhattan and other office-rich areas to allow for more housing. A spokesman for Mayor Bill de Blasio didn't immediately return a request for comment. In a statement, New York City Council Speaker Corey Johnson said the creation of affordable housing was important and he looked forward to seeing more details of the governor's proposal.
Mr. Cuomo also said the state would partner with Cornell University to create a public health corps that would hire 1,000 people to help with vaccination efforts this year and train 100,000 citizens so they could volunteer in future health emergencies.
Without offering details, the governor said the state would work to make broadband internet services not just accessible but affordable for residents around the state.
Other parts of Monday's speech reiterated Mr. Cuomo's initiatives and positions, including a monthslong push to have the federal government send additional aid to make up for lost state revenue. The governor spoke about the progress among local police departments in the state to formulate plans to re-evaluate their policing practices after engagement with community stakeholders.
The most immediate challenges will be fiscal. By law, Mr. Cuomo must formally propose a budget next week for the fiscal year that begins on April 1. The state budget division projects an $8.7 billion deficit, and Mr. Cuomo has already said he hopes to raise revenue by legalizing recreational marijuana and mobile sports betting.
Progressive groups and labor unions are pressuring Mr. Cuomo to raise income taxes. Sochie Nnaemeka, executive director of the left-leaning Working Families Party, responded to Mr. Cuomo's speech by saying "the State of our State is precarious and unequal."
Republicans took the opportunity to criticize the governor for the slower-than-expected distribution of coronavirus vaccines. County executives said that state officials worked outside existing plans and set strict limits on who could receive doses, frustrating the early rollout.
Assemblyman Ed Ra, a Republican from Long Island, said Mr. Cuomo should devote his energy to the looming deficit.
"We should be singularly focused on distributing the vaccine, providing aid to our small businesses and workers and getting our economy moving in the right direction again. That's going to be challenging enough," he said.
Write to Jimmy Vielkind at Jimmy.Vielkind@wsj.com
(END) Dow Jones Newswires
01-11-21 1714ET
