Tom Golisano -- 20 June 2002

>> Gary Walker: JUST AHEAD ON "NEED TO KNOW," WHAT IS TOM GOLISANO DOING RUNNING FOR GOVERNOR AGAIN? MAINSTREAM POLITICIANS WISH HE AND HIS MILLIONS WOULD GO AWAY. MANY HERE WOULD RATHER HE STAY HOME AND CONTINUE HIS PHILANTHROPY. TOM GOLISANO TALKS WITH US TONIGHT ABOUT WHY GIVING MILLIONS TO COMMUNITY INTERESTS AND HEADING UP A SUCCESSFUL CORPORATION MIGHT NOT BE ENOUGH FOR HIM. PLUS ELLEN ROSEN IS HERE FOR THE "BUSINESS SECTION" WITH THE "DEMOCRAT AND CHRONICLE." IT'S ALL AHEAD ON "NEED TO KNOW."

(Music)

>> THIS IS "NEED TO KNOW," THE ROCHESTER AREA'S ONLY IN-DEPTH NEWS PROGRAM. "NEED TO KNOW" IS A PRODUCTION OF WXXI NEWS AND PUBLIC AFFAIRS, COVERING ISSUES, POLITICS, EDUCATION AND CURRENT EVENTS.

>> "NEED TO KNOW" IS MADE POSSIBLE BY THE DAISY MARQUIS JONES FOUNDATION, BY DORSCHEL LEXUS, AND THROUGH THE SUPPORT OF VIEWERS LIKE YOU.

>> Gary Walker: THANK YOU FOR JOINING US. I'M GARY WALKER. HE GREW A SMALL BUSINESS INTO A BIG BUSINESS THAT CONTINUES TO GROW. HE'S A POLITICAL FORCE IN THIS YEAR'S NEW YORK GUBERNATORIAL RACE. UNDER THE BANNER OF THE INDEPENDENCE PARTY HE HELPED TO BUILD, TOM GOLISANO HAS TWICE BEFORE RUN FOR GOVERNOR, BOTH TIMES UNSUCCESSFULLY. NOW HE'S GEARING FOR A THIRD TRY AND MAKING HEADLINES DOING IT. GOLISANO STILL HAS TO FACE A SEPTEMBER PRIMARY FOR ONE PARTY LINE AND A WRITE-IN ATTEMPT FOR ANOTHER, BUT HE CONTINUES TO PUSH AHEAD IN HIS BID TO UNSEAT GOVERNOR GEORGE PATAKI. TOM GOLISANO WILL MAKE HIS THIRD RUN FOR GOVERNOR OF NEW YORK THIS FALL, HOPING THE THIRD TIME IS THE CHARM. GOLISANO SPENT MORE THAN $6.5 MILLION IN HIS FIRST GUBERNATORIAL RACE, GARNERING 4% OF THE VOTE. IN 1998, GOLISANO DOUBLED HIS SPENDING AND SAW RESULTS, CAPTURING 8% OF THE VOTE. THIS TIME AROUND, SUPPORTERS SAY HE IS WILLING TO SPEND UP TO $75 MILLION ON HIS CAMPAIGN FOR GOVERNOR. GOLISANO BELIEVES HE CAN MOUNT A SERIOUS CHALLENGE TO THE INCUMBENT GEORGE PATAKI. HE IS WORKING TO GET HIS NAME ON THE INDEPENDENCE PARTY LINE IN NOVEMBER. GOLISANO IS A FOUNDING MEMBER OF THE PARTY AND IS FORCING A PRIMARY WITH PATAKI FOR THE INDEPENDENCE LINE. GOLISANO IS ALSO CHALLENGING THE GOVERNOR FOR THE CONSERVATIVE NOMINATION. HE IS CIRCULATING PETITIONS TO TRY AND FORCE THAT PRIMARY. GOLISANO IS IN A FINANCIAL POSITION TO LAUNCH HIS BID FOR THE GOVERNORSHIP BASED PRIMARILY ON HIS BUSINESS SUCCESS. GOLISANO FOUNDED PAYCHEX IN 1971. THE COMPANY IS NOW A LEADING NATIONAL PROVIDER OF PAYROLL AND HUMAN RESOURCE SERVICES FOR SMALL AND MEDIUM-SIZED BUSINESSES. IN THE 2001 FISCAL YEAR, PAYCHEX EMPLOYED MORE THAN 7,300 WORKERS, SERVING MORE THAN 375,000 CLIENTS AND EARNED NEARLY $870 MILLION IN REVENUE. WHILE GOLISANO HAS USED HIS OWN MONEY TO PURSUE HIS POLITICAL ASPIRATIONS, HE ALSO HAS INITIATED SEVERAL LOCAL PHILANTHROPIC VENTURES. GOLISANO HAS DONATED $40 MILLION TO LOCAL INTERESTS, INCLUDING $14 MILLION TO STRONG CHILDREN'S HOSPITAL, $14 MILLION TO THE ROCHESTER INSTITUTE OF TECHNOLOGY, $5 MILLION TO ROBERTS WESLEYAN COLLEGE, $2 MILLION TO THE AL SIGL CENTER, AND $5 MILLION TO OTHER NOT-FOR-PROFIT ORGANIZATIONS SERVING PERSONS WITH DISABILITIES. IF ELECTED GOVERNOR, GOLISANO HAS STATED HE WOULD STEP DOWN AS CHIEF EXECUTIVE OFFICER OF PAYCHEX. HOWEVER, HE WOULD REMAIN A MAJOR SHAREHOLDER IN THE COMPANY AND THEREFORE CONTINUE TO HAVE A VOICE IN HOW THE COMPANY IS RUN. AND JOINING ME IN STUDIO IS TOM GOLISANO. TOM, THANK YOU FOR COMING.

>> NICE TO BE HERE, GARY.

>> Gary Walker: LET'S -- I GUESS THE QUESTION I HEAR FOR THE MOST PART, AND I LIKE TO ASK QUESTIONS PEOPLE ASK ME. WHY, WHY, WHY, WHY IS TOM GOLISANO RUNNING FOR GOVERNOR AGAIN?

>> WELL, I THINK IT'S PRETTY STRAIGHTFORWARD. I'VE LIVED HERE ALL MY LIFE. I HAVE WATCHED OUR STATE GO THROUGH A PERIOD OF DECLINE. WHEN GEORGE PATAKI WAS ELECTED, THERE WAS A LOT OF HOPE THAT ECONOMICALLY HE WOULD TURN IT AROUND, PARTICULARLY UPSTATE. AND FOR THE FIRST COUPLE OF YEARS, IT DIDN'T LOOK TOO BAD, QUITE FRANKLY, BUT WHAT'S HAPPENED THE LAST SIX YEARS, GARY, IS PRETTY SCARY. FOR EXAMPLE, OUR NEW YORK STATE BUDGET UNDER GOVERNOR PATAKI'S ADMINISTRATION HAS GONE FROM $62 BILLION TO $89 BILLION. THAT'S A 46% INCREASE IN JUST SEVEN YEARS, AND ON A PER PERSON BASIS, IT'S $1,500 OF NEW STATE SPENDING FOR EVERY MAN, WOMAN AND CHILD IN OUR STATE. WE HAVE NOT HAD A CONSERVATIVE ENVIRONMENT. WE'RE STILL THE HIGHEST TAXED PER CAPITA POPULATION IN THE COUNTRY, IF YOU COMBINE STATE AND LOCAL TAXES, AND NOT ONLY THAT, BUT THE AMOUNT OF DEBT THAT'S BEEN PILED ON TOP OF THE TAXPAYER, TOO. SO WE HAVE GONE BACKWARDS. AND I DON'T THINK THERE'S ANYBODY IN UPSTATE NEW YORK PARTICULARLY THAT WOULD SAY, "HEY, THINGS ARE GREAT; THE ECONOMY IS BOOMING HERE. WE'RE REALLY DOING A GREAT JOB." SO MANY PEOPLE ARE CONCERNED ABOUT THEIR CHILDREN AND GRANDCHILDREN LEAVING; SO MANY PEOPLE ARE CONCERNED ABOUT THE SO-CALLED BRAIN DRAIN, WITH A LOT OF OUR 22- TO 34-YEAR-OLDS LEAVING OUR COMMUNITY. IT'S VERY SERIOUS. AND I THINK IT CAN BE TURNED AROUND. I REALLY THINK IT CAN BE TURNED AROUND.

>> Gary Walker: LET ME ASK YOU, LET'S GET SOME OF THESE -- HOW DO I PUT THEM? -- INSIDE POLITICAL REPORTER QUESTIONS OR CONVENTIONAL WISDOM QUESTIONS, THE STUFF THAT'S IN THE PAPERS EVERY DAY, PARTICULARLY THE NEW YORK MEDIA AND THE ALBANY MEDIA, AND LET ME PUT THEM OUT THERE AND KNOCK THEM OFF AND GET THEM ALL SAID AND DONE WITH. FOR INSTANCE, I THINK THE "NEW YORK DAILY NEWS" SAID YOU ARE RUNNING FOR GOVERNOR BECAUSE YOU HAVE A GIANT EGO AND YOU'RE BASICALLY A BORED BILLIONAIRE.

>> WELL, THAT'S WHAT THE COMPETITION IS SAYING. THE TWO-PARTY SYSTEM DOESN'T LIKE OUTSIDE COMPETITION COMING INTO IT, AND SO PEOPLE ARE USING THIS AS AN ALIBI OR A REASON FOR ME RUNNING. AND, OBVIOUSLY, IT'S THE FURTHEST THING FROM MY MIND. PAYCHEX HAS PROVIDED ME A TREMENDOUS AMOUNT OF OPPORTUNITY TO BE RECOGNIZED IN THE COMMUNITY, AND THAT'S GREAT. BUT THE REAL PROBLEM IS THE CONDITION OF OUR STATE. AND THEY'LL USE STRATEGIES LIKE THAT, YOU KNOW, TO TAKE PEOPLE'S EYE OFF THE BALL.

>> Gary Walker: ONE WE'RE SEEING A LOT LATELY IS THAT YOU'RE RUNNING JUST TO SINK THE GOVERNOR BECAUSE YOU HAVE A BOND WITH DEMOCRATS OR PARTICULARLY WITH Mr. CUOMO...

>> WELL, IF YOU REMEMBER THE 1994 CAMPAIGN WHEN I DEBATED MARIO CUOMO ON TV THREE CONSECUTIVE TIMES, ANYBODY WHO SAYS I HAVE A BOND WITH THE DEMOCRATS REALLY NEED TO HAVE THEIR HEAD EXAMINED QUITE FRANKLY BECAUSE PHILOSOPHICALLY, WE'RE MILES APART. I AM RUNNING FOR GOVERNOR BECAUSE I THINK I'D MAKE THE BETTER GOVERNOR.

>> Gary Walker: HAVE YOU HEARD -- I HAVE HEARD A LOT OF THIS AND PEOPLE ARE NOT LIKE OUT IN THE PAPERS WITH IT A LOT, BUT COMMUNITY LEADERS AND LOCAL ELECTED POLITICIANS HAVE VOICED KIND OF A SIMILAR VEIN, THAT THEY WOULD RATHER YOU NOT RUN FOR GOVERNOR AND JUST STAY HERE AND KEEP DOING ALL THE THINGS THAT YOU'RE DOING AND HELP GROW THIS LOCAL ECONOMY. IN OTHER WORDS, YOU KNOW, INSTEAD OF PUTTING YOUR EFFORTS AND YOUR RESOURCES THERE, YOU KNOW, CONCENTRATE LOCALLY.

>> WELL, MAYBE, GARY, WE CAN HAVE THE BEST OF BOTH WORLDS. PAYCHEX IS A VERY STRONG COMPANY; IT'S GOT A GREAT FUTURE. IF I GET ELECTED GOVERNOR, PAYCHEX IS GOING TO CONTINUE TO DO WELL. IT'S GOING TO BE VERY SUPPORTIVE OF THIS COMMUNITY. THE KEY PEOPLE IN THE ORGANIZATION WILL SUPPORT THE COMMUNITY JUST AS I HAVE. SO THAT WILL CONTINUE WHETHER OR NOT I'M RUNNING PAYCHEX OR NOT. IF I HAVE THE OPPORTUNITY TO BECOME GOVERNOR AND REALLY DO SOMETHING SIGNIFICANT FOR THIS STATE, MAYBE WE CAN HAVE THE BEST OF BOTH WORLDS.

>> Gary Walker: I HAVE TO ASK YOU THIS. YOU WERE -- THE IRONY ABOUNDS OBVIOUSLY OF YOU HAVING TO GO INTO A PRIMARY IN SEPTEMBER FOR A PARTY THAT YOU HELPED CREATE AS A THIRD VOICE TO GET AWAY FROM THE TWO MAJOR PARTIES. NOW THE PARTY WANTS TO ENDORSE -- THE MAJORITY OF THEM AT LEAST, AT THIS RATE, WANTS TO ENDORSE A REPUBLICAN INCUMBENT GOVERNOR. HOW DOES THAT MAKE YOU FEEL?

>> WELL, FIRST OF ALL, WHAT THE POLITICAL PROCESS SHOULD BE ABOUT IS COMPETITION. SO THE FACT THAT THERE'S COMPETITION FOR THE GUBERNATORIAL SLOT ON THE INDEPENDENCE PARTY LINE SHOULD NOT SURPRISE OR DISMAY ANYBODY. IT CERTAINLY DOESN'T DISMAY ME. WHAT DOES DISMAY ME IS THE FACT THAT GOVERNOR PATAKI HAS GOT A LOT OF DELEGATE SUPPORT BY USING THE STATE PAYROLL, BY USING THE STATE GRANTS, BY AWARDING CONTRACTS, AND -- WELL, TO GIVE YOU AN EXCELLENT EXAMPLE, MANORA FALLANI HAS DONE A LOT TO BECOME A PART OF THE INDEPENDENCE PARTY, BE IT GOOD OR BAD. THE FACT OF THE MATTER IS HER NON-PROFIT ORGANIZATION RECEIVED A $10 MILLION TAX-EXEMPT BOND FROM THE GOVERNOR. OKAY? IT'S RUMORED THAT THE INDEPENDENCE PARTY CHAIRMAN HAS RECEIVED A CHAIRMANSHIP OF THE O.T.B. IN SUFFOLK COUNTY, AND THAT'S A SIX-FIGURE JOB. SO WHEN YOU'RE A PERSON LIKE MYSELF TRYING TO FIGHT THE STATE PAYROLL AND STATE CONTRACTS AND STATE PATRONAGE, IT MAKES IT VERY, VERY DISCOURAGING. I'M NOT CONCERNED ABOUT IT IN THE LONG RUN BECAUSE I REMEMBER -- OR WE SHOULD REMEMBER THE FACT THAT THE PEOPLE THAT VOTED FOR ME INITIALLY ARE THE PEOPLE THAT ARE AGAINST THE TWO-PARTY SYSTEM, ARE AGAINST WHAT'S HAPPENED IN ALBANY FOR THE LAST 20 YEARS.

>> Gary Walker: HOW DO YOU REACT TO THE NEWS THAT THE GOVERNOR MAY BE USING SOME OF HIS OWN CAMPAIGN FUNDS TO HIRE PEOPLE TO HELP SIGN UP PEOPLE FOR THE INDEPENDENCE PARTY?

>> (Chuckling) ISN'T THAT IRONIC? WHAT'S TRADITIONALLY HAPPENED IN NEW YORK STATE IS THAT A THIRD, FOURTH OR FIFTH PARTY WILL COME ALONG AND THE TWO MAJOR PARTIES WILL DO EVERYTHING THEY CAN TO COOPT OR TAKE OVER THOSE PARTIES, EVEN TO THE POINT OF PUTTING REPUBLICANS -- HAVE THEM CHANGE TO REGISTERED INDEPENDENCE JUST SO THEY CAN HAVE INFLUENCE IN THE INDEPENDENCE PARTY. IT'S HAPPENED WITH THE LIBERAL PARTY; IT'S HAPPENED WITH THE CONSERVATIVE PARTY, AND NOW IT'S HAPPENING WITH THE INDEPENDENCE PARTY.

>> Gary Walker: LET'S TALK ABOUT THE CONSERVATIVE PARTY A LITTLE BIT. YOU'RE TRYING TO DO A SIGN-ON, A PETITION TO GET INTO -- BASICALLY AGAIN TO PRIMARY THE GOVERNOR FOR THE CONSERVATIVE PARTY LINE. TOM COOK, OUR LOCAL CONSERVATIVE PARTY CHAIRMAN, SAYS YOU DON'T HAVE ANY CONSERVATIVE CREDENTIALS, ARE NOT A REAL CONSERVATIVE. LET ME ASK YOU: ARE YOU A REAL CONSERVATIVE? AND WHAT DOES THAT MEAN TO YOU?

>> I THINK FISCALLY I'M ABOUT AS CONSERVATIVE AS YOU CAN BE, AND IF I CAN POINT TO ANYTHING, I THINK POINTING TO THE TRACK RECORD OF PAYCHEX CERTAINLY WOULD DEMONSTRATE THAT. AND NOT ONLY PAYCHEX, BUT YOU KNOW I HAVE BEEN INVOLVED IN OTHER ENTREPRENEURIAL ORGANIZATIONS. I THINK FROM A FISCAL PERSPECTIVE, I'M ABOUT AS CONSERVATIVE AS I CAN BE. THE WAY OUR BUDGET PROCESS WORKS IN NEW YORK STATE IS LUDICROUS. IT'S LATE; IT'S NOT UNDER CONTROL. THIS YEAR THEY'RE USING A LOT OF ONETIME REVENUE SOURCES. THERE'S NO BUILT-IN SURPLUSES. IT'S BEEN AT THREE AND FOUR TIMES THE RATE OF INFLATION FOR THE LAST SEVEN YEARS. I DON'T KNOW HOW ANYBODY COULD CALL GEORGE PATAKI A CONSERVATIVE, ESPECIALLY THE LAST FOUR OR FIVE YEARS. SO IF I WAS ELECTED GOVERNOR, THE FIRST THING I WOULD DO IS BRING THAT BUDGET PROCESS UNDER CONTROL. THE FACT OF THE MATTER IS THE BEST THING WE CAN DO FOR ECONOMIC DEVELOPMENT IN OUR STATE IS KEEP OUR TAXES DOWN. WHENEVER YOU TAKE MONEY AWAY FROM HOUSEHOLDS AND GIVE IT TO GOVERNMENT OFFICIALS TO SPEND, USUALLY YOU'RE NOT GOING TO GET YOUR VALUE FOR IT AND YOU'RE TAKING AWAY THE ABILITY FOR PEOPLE TO ENHANCE THEIR LIFESTYLE.

>> Gary Walker: SO BASICALLY YOUR MESSAGE TO CONSERVATIVE VOTERS IS, "I AM A FISCAL CONSERVATIVE AND THAT'S A MAJOR, PRESSING AGENDA WE NEED TO LOOK AT AND LET'S NOT TALK ABOUT SOCIAL CONSERVATIVE ISSUES"?

>> ABSOLUTELY.

>> Gary Walker: I WANT TO ASK A COUPLE MORE POLITICAL QUESTIONS BEFORE WE GET INTO SOME OTHER THINGS. ONE OF THEM IS THAT A MINOR PARTY WINNING STATEWIDE IS REALLY VERY RARE IN NEW YORK STATE. I THINK THE LAST MINOR PARTY CANDIDATE TO DO THAT WAS JAMES BUCKLEY. I THINK IT WAS 1970, AND THAT WAS BECAUSE OF A WEIRD CONFLUENCE OF RICHARD OTTINGER RUNNING AND CHARLES GOODALE AND SOMEHOW THEY CANCELED EACH OTHER OUT AND THE THIRD PARTY SNUCK IN. I HAVE TO ASK YOU: ARE YOU LOOKING AT THAT RACE? IS THAT YOUR STRATEGY? I MEAN, GIVE THE HISTORY OF THE STATE, WHAT'S YOUR GAME PLAN TO WIN?

>> WELL, FIRST OF ALL, WHEN YOU HAVE A THREE-WAY RACE, YOU KNOW YOU ONLY NEED 34, 35 OR 36% TO WIN. SO THAT'S VERY IMPORTANT. THE MORE BALANCED THE RACE IS RELATIVE TO DEMOCRATS AND REPUBLICANS AND MYSELF, THE BETTER OPPORTUNITY WE HAVE. BUT WE DON'T HAVE TO LOOK TOO FAR GEOGRAPHICALLY, GARY. LOWELL WEICKER WON AS AN INDEPENDENT IN CONNECTICUT. ANGUS KING WAS GOVERNOR AS AN INDEPENDENT IN MAINE, AND JESSE VENTURA IN MINNESOTA. SO THERE'S A LOT OF PRECEDENT OUT THERE. QUITE FRANKLY, IT'S ALMOST LIKE A SNOWBALL. ONCE WE GET THAT SNOWBALL GOING, I THINK THE DESIRE TO HAVE SOMETHING DIFFERENT POLITICALLY IN THIS STATE IS GOING TO GAIN A LOT OF MOMENTUM. WHAT IT MAY TAKE IN THE POLLING NUMBERS, WHO KNOWS. BUT AS SOON AS PEOPLE START TO HAVE THE FEELING THAT IT'S POSSIBLE FOR US TO WIN, I THINK YOU'RE GOING TO SEE A BIG MOMENTUM START TO BUILD.

>> Gary Walker: I HAVE COVERED POLITICS FOR A LONG TIME, INCLUDING IN ALBANY FOR MANY YEARS AS WELL. JACK COOKE, WHO EVERYONE KNOWS IS AN INSIDE REPUBLICAN STRATEGIST, HE DID HAVE A POINT. HE SAID THAT YOU MAY HAVE A LOT OF MONEY BUT ORGANIZATION, AND GRASSROOTS ORGANIZATIONS IN DIFFERENT COMMUNITIES, COULD WELL BE AN ISSUE FOR YOU. SO I'M WONDERING, DO YOU HAVE ENOUGH INFRASTRUCTURE TO WIN A THIRD-PARTY RACE OR DO YOU THINK PAID MEDIA IS GOING TO BE ENOUGH TO CARRY THAT?

>> NO, PAID MEDIA IS NOT ENOUGH TO CARRY IT, EVEN THOUGH THE AMOUNT OF PAID MEDIA THAT WE'RE GOING TO HAVE THIS TIME IS GOING TO BE A MULTIPLE OF WHAT WE HAD IN PRIOR YEARS. YOU DO NEED AN ORGANIZATION AND WE ARE RIGHT IN THE PROCESS OF PUTTING THAT ORGANIZATION TOGETHER WITH OFFICES AROUND THE STATE, WITH POLITICAL OPERATIVES STATIONED IN THOSE OFFICES, A LOT OF RESEARCH PEOPLE ON ISSUES... A LOT OF GRASSROOTS EFFORT THAT WE DIDN'T HAVE IN '94 AND '98.

>> Gary Walker: YOU MENTIONED MONEY SO WHY NOT --

>> YOU MENTIONED IT A FEW TIMES! (Laughing)

>> Gary Walker: YOU SPENT $8 MILLION ON YOUR LAST RACE AND -- I THINK IT WAS MORE THAN THAT.

>> IT WAS 13.

>> Gary Walker: ALMOST DOUBLED THAT; THAT'S RIGHT. MY APOLOGIES. BUT WE HAVE HEARD SOME WILD NUMBERS, SAYING YOU'RE GOING TO BE SPENDING $75 MILLION, ET CETERA, ET CETERA. WHAT ARE YOU GOING TO SPEND?

>> GARY, IT'S NOT BEEN DETERMINED, BUT I DON'T WANT TO BE SITTING THERE THE DAY AFTER ELECTION DAY AND SAY WE LOST THIS RACE BECAUSE WE DIDN'T SPEND ENOUGH RESOURCES. THE BUDGET IS THERE. WE'RE GOING TO DECIDE HOW TO SPEND IT AS EFFECTIVELY AND AS EFFICIENTLY AS WE CAN. I'M DISMAYED, LIKE MANY PEOPLE ARE, THAT MYSELF AND TWO OTHER CANDIDATES NEED TO BE SPENDING THE KINDS OF MONEY WE'RE SPENDING, BUT THE FACT OF THE MATTER IS THAT THE REPUBLICAN/DEMOCRATIC LEADERSHIP HAS CREATED THIS ENVIRONMENT. THE IMPACT THAT SPECIAL INTERESTS AND PAC'S HAVE ON THE POLITICAL PROCESS... IF I HAD MY WAY, I WOULD DEBATE GEORGE PATAKI, CARL McCALL, AND ANDREW CUOMO FOR FIVE CONSECUTIVE NIGHTS FOR THREE WEEKS ON PUBLIC TELEVISION AND NONE OF US WOULD SPEND ANY MONEY. WE WOULD HAVE A MUCH BETTER GOVERNMENT IF WE DID THAT.

>> Gary Walker: I'LL SUGGEST THAT, SEE IF WE CAN PULL THAT OFF.

>> WE HAVEN'T BEEN ABLE TO GET GEORGE PATAKI TO DEBATE.

>> Gary Walker: THIS IS TRUE. LET ME ASK YOU, THOUGH, IS THAT NUMBER OUT OF -- WOULD IT BE JUST OUT OF SIGHT OR IS IT A POSSIBILITY?

>> IT'S VERY MUCH A POSSIBILITY.

>> Gary Walker: THAT'S A LOT OF MONEY. LET'S TALK ABOUT SOME ISSUES.

>> LOOK HOW IMPORTANT THE STAKES ARE. I MEAN WE HAVE WATCHED THIS STATE JUST UNDER MARIO CUOMO, 39 FORTUNE 500 COMPANIES LEFT NEW YORK STATE, THEIR HEADQUARTERS. AND NOBODY CAN SAY OVER THE LAST SEVEN OR EIGHT YEARS, PARTICULARLY UPSTATE, ANYTHING HAS GOTTEN ANY BETTER. SO IT SOUNDS LIKE A LOT OF MONEY TO US INDIVIDUALLY, BUT FOR THE OVERALL BENEFIT OF THE STATE, IT'S REALLY SMALL.

>> Gary Walker: ARE YOU GOING TO FUND-RAISE TO HELP?

>> NO, I HAVE DECIDED NOT TO DO FUND-RAISING. I'M GOING TO FINANCE THIS ENTIRELY ON MY OWN.

>> Gary Walker: LET'S TALK ABOUT SOME ISSUES, Mr. GOLISANO. WHAT'S THE GOVERNOR DOING OR NOT DOING THAT'S DRIVING YOU?

>> WELL, I THINK WHAT'S HAPPENED RECENTLY -- AND IT'S MORE WHAT THE GOVERNOR IS DOING -- HE WANTS TO GET REELECTED. WHAT'S GONE ON IN THE LAST 12 TO 24 MONTHS IS A TOTAL SHIFT IN HIS FISCAL POSITION FROM THE RIGHT WAY OVER TO THE LEFT. AND LET ME GIVE YOU SOME EXAMPLES. I ALREADY MENTIONED THE GROWTH OF THE BUDGET. THAT'S REAL OBVIOUS. WE SORT OF KID THAT THE GOVERNOR HAS NEW BEST FRIENDS. ONE IS DENNIS RIVERA FROM THE 1199 HEALTH CARE WORKERS. THEY PRESENTED A PACKAGE TO THE HEALTH CARE WORKERS. I THINK IT'S ALMOST $3 BILLION. IT CAME OUT OF THE MIDDLE OF THE NIGHT. ONLY THE THREE PARTIES -- THE TWO SPEAKERS AND THE GOVERNOR WERE INVOLVED IN IT. THE HEALTH CARE WORKERS ARE A VERY LARGE PAC. DENNIS RIVERA IS A HIGHLY ORGANIZED UNION LEADER. AND I THINK IT'S GOING TO HAVE A DRAMATIC NEGATIVE IMPACT ON HEALTH CARE OVER THE NEXT SEVERAL YEARS IN NEW YORK STATE. WHEN YOU START ALIGNING ANNIVERSARY DATES AND UNION CONTRACT RENEWABLE DATES, YOU CAN SEE IT ALMOST COMING, AND WHEN YOU SEE PRESSURE ON HOSPITALS TO UNIONIZE BASED ON THEIR CERTIFICATES OF NEED, COMPLIANCE AND ALL THAT TYPE OF THING... I THINK THERE'S GOING TO BE A SIGNIFICANT NEGATIVE IMPACT. SO -- AND A THING LIKE THAT, A THING ABOUT NOT DOING MUCH ABOUT OUR -- WELL, THAT'S FISCAL -- ABOUT OUR DEBT. THE THINGS THEY ARE TALKING ABOUT TODAY -- WORKERS' COMPENSATION AND MINIMUM WAGE.

>> Gary Walker: MINIMUM WAGE INCREASE, WHAT ABOUT THOSE?

>> MY PERSONAL OPINION IS THAT THE MINIMUM WAGE CONCEPT IS A MYTH. EMPLOYERS SHOULD HAVE THE ABILITY TO PAY WHATEVER IT TAKES TO GET THE JOB DONE. AND WHEN YOU START RAISING THE MINIMUM WAGE ABOVE THE FEDERAL LEVEL, WHAT DOES THAT SAY TO EVERYBODY OUTSIDE OF NEW YORK STATE ABOUT THE ECONOMIC OPPORTUNITY IN NEW YORK? WHEN THE LEGISLATURE IN NEW YORK PUSHES UP THE MINIMUM WAGE, IT'S GOING TO COST US MORE TO OPERATE HERE. THE OTHER AREA THAT I THINK THE GOVERNOR HAS ABSOLUTELY NOT GOTTEN INVOLVED IN THAT'S HURT OUR COMMUNITY TREMENDOUSLY IS URBAN EDUCATION. ALL OF OUR URBAN EDUCATIONAL CENTERS -- NOT JUST ROCHESTER BUT BUFFALO, SYRACUSE, ALBANY, YONKERS -- THEY'RE ALL SUFFERING FROM THE SAME THING: AND THAT IS THEY'RE SPENDING A TREMENDOUS AMOUNT OF MONEY AND GETTING A VERY TERRIBLE RESULT. AND THE GOVERNOR'S ANSWER, BASED ON THE $200 MILLION THAT HE THREW AT THE TEACHERS' UNION, IS TO THROW MORE MONEY AT IT. IT'S NOT THE ANSWER.

>> Gary Walker: YOU WOULDN'T GIVE MAYORS AUTHORITY OVER SCHOOL DISTRICTS?

>> NO, I WOULDN'T. AND THE REASON BASICALLY FOR THAT IS MAYORS HAVE A SHORT FOCUS TIME OF FOUR YEARS. I THINK TO DO A GOOD JOB IN EDUCATION, YOU HAVE TO HAVE A LONGER-TERM VIEW OF THAT. PLUS I WOULD HATE TO SEE EDUCATION TURN INTO A PATRONAGE SITUATION. THAT SCARES ME.

>> Gary Walker: LET'S TALK A LITTLE ABOUT THE COMPANY QUICKLY. I HAVE ALWAYS WANTED TO ASK YOU THIS. TOUGH QUESTION: DO YOU THINK YOU'RE -- ARE YOU WORRIED ABOUT SENDING THE WRONG MESSAGE TO YOUR EMPLOYEES, TO YOUR SHAREHOLDERS, STOCKHOLDERS, THAT FOR THREE TIMES IN THE LAST DECADE YOU HAVE BASICALLY COME OUT AND SAID, "I WOULD RATHER BE DOING SOMETHING ELSE THAN RUNNING PAYCHEX"? DO YOU THINK THAT MIGHT BE SENDING A NEGATIVE MESSAGE ABOUT THE COMPANY? YOU COULDN'T TELL BY PERFORMANCE, BUT ARE YOU WORRIED ABOUT THAT AT ALL?

>> I'M NOT, GARY, AND I'LL TELL YOU WHY. FIRST OF ALL, I HAVE GONE THROUGH IT TWICE AND I HAVE WATCHED OUR EMPLOYEE REACTION; I'VE WATCHED THE SHAREHOLDER REACTION. I MADE A PRESENTATION AT AN INVESTMENT CONFERENCE FOR BEAR STERNS ABOUT TWO WEEKS AGO. WHEN I WAS FINISHED WITH THE PRESENTATION, FOUR OF THE INSTITUTIONAL INVESTORS -- THREE OF THEM WERE SHAREHOLDERS -- CAME UP TO ME AFTER THE PRESENTATION AND SAID, "TOM, HOW CAN WE HELP YOU WITH YOUR CAMPAIGN?" NOW, MAYBE WHEN THE POLLS START SHOWING THAT I'M WINNING -- (Laughing) -- THEIR ATTITUDE MAY CHANGE. BUT RIGHT NOW, EVERYBODY HAS BEEN VERY, VERY SUPPORTIVE. I THINK THEY KNOW THIS IS A VERY PASSIONATE VENTURE FOR ME AND IT'S VERY IMPORTANT TO THE STATE AND TO MYSELF AND TO THE POPULATION, SO THEY KIND OF SUPPORT IT.

>> Gary Walker: WE HAVE A COUPLE OF MINUTES LEFT. I WANT TO FINISH WITH THIS: YOU HAVE MADE SOME INCREDIBLE MAJOR CASH DONATIONS IN THIS COMMUNITY, $40 MILLION IN THE PAST COUPLE OF YEARS. IT SEEMS TO ME IT'S KIND OF HARKENING BACK TO A LONG TRADITION WE USED TO HAVE HERE IN ROCHESTER, THIS ACTIVIST C.E.O., PHILANTHROPIST C.E.O... DO YOU ENVISION YOURSELF LIKE THIS GENERATION'S, THIS MILLENNIUM'S GEORGE EASTMAN?

>> NO, I DON'T ENVISION MYSELF AT ALL. I'M FLATTERED THAT YOU WOULD EVEN SUGGEST SOMETHING LIKE THAT. BUT THE FACT OF THE MATTER IS THAT PAYCHEX HAS BEEN VERY GOOD TO ME; THE COMMUNITY HAS BEEN VERY GOOD TO PAYCHEX. I'VE BEEN ABLE TO AMASS A SIGNIFICANT AMOUNT OF RESOURCES, AND WHY NOT GIVE IT BACK TO THE COMMUNITY? I MEAN, IT'S THE THING TO DO. ORGANIZATIONS LIKE R.I.T. AND STRONG CHILDREN'S CENTER AND ROBERTS WESLEYAN, St. JOHN'S... THEY'RE ALL VERY, VERY IMPORTANT INSTITUTIONS IN OUR COMMUNITY. I HAVE THE LUXURY AND ABILITY TO SUPPORT THEM; I'M GOING TO.

>> Gary Walker: DO YOU SEE YOURSELF AS KIND OF A ROLE MODEL THEN FOR WHAT A LOCAL C.E.O. SHOULD BE?

>> WELL, I DON'T WAKE UP IN THE MORNING THINKING ABOUT THAT, BUT I WOULD BE HAPPIEST, I GUESS, IF OTHER C.E.O.s WERE AS INTERESTED AND INVOLVED IN THE COMMUNITY AS I WANT TO BE. SO FROM THAT PERSPECTIVE, YES.

>> Gary Walker: OKAY. I GUESS THE LAST THING I WOULD SAY TO YOU IS THAT WHAT WOULD YOU HAVE TO SAY AT THIS POINT IN YOUR LIFE? YOU JUST HIT 60; YOU'RE RUNNING FOR GOVERNOR --

>> DON'T TELL EVERYBODY THAT!

>> Gary Walker: YOU HAD A BIG PARTY FOR YOURSELF! (Laughing)

>> LIFE IS FULL OF ADVENTURES, AND RUNNING FOR GOVERNOR IS A VERY, VERY IMPORTANT ADVENTURE FOR ME. IT'S IMPORTANT TO THE STATE AND I'M REALLY LOOKING FORWARD TO IT. IT'S VERY IMPORTANT TO EVERYBODY.

>> Gary Walker: TOM GOLISANO, THANK YOU VERY MUCH. THAT IS ALL THE TIME WE HAVE FOR THE DISCUSSION FOR THIS SEGMENT. FOR MORE INFORMATION ON Mr. GOLISANO AND THE RACE FOR GOVERNOR, LOG ON TO OUR WEB SITE, wxxi.org/ntk. TAKE PART IN OUR WEEKLY INTERNET POLL. AND FOR DAILY COVERAGE OF THE STATE POLITICS AND ISSUES IN THE GUBERNATORIAL ELECTION, NYcitizens.org. NOW, ONE MORE NOTE: SINCE Mr. GOLISANO IS ON THE PRIMARY BALLOT FOR THE INDEPENDENCE PARTY, AS IS GOVERNOR PATAKI, WXXI WILL, OF COURSE, OFFER EQUAL TIME TO THE GOVERNOR TO APPEAR ON "NEED TO KNOW."


NOW IT'S TIME FOR THIS WEEK'S
EDITION OF "THE BUSINESS
SECTION" WITH THE "THE DEMOCRAT AND CHRONICLE."


ELLEN, THANKS FOR JOINING US AGAIN.

>> Ellen Rosen: THANK YOU, GARY.

>> Gary Walker: I JUST HAD A RATHER INTERESTING TALK WITH Mr. GOLISANO AND I WONDER IF YOU CAN TELL ME ANYTHING ABOUT HIS COMPANY'S PERFORMANCE OF LATE?

>> Ellen Rosen: WELL, PAYCHEX IS A VERY CONSISTENT PERFORMER. IT'S A VERY SOLID COMPANY, BUT IT'S BEEN HIT BY THE ECONOMY. PAYCHEX DEALS LARGELY WITH SMALL AND MEDIUM-SIZED BUSINESSES AND THOSE ARE EXACTLY THE COMPANIES THAT HAVEN'T BEEN ABLE TO HIRE IN THIS ECONOMY. WHEN THEIR PAYROLLS ARE DOWN, THE AMOUNT OF WORK THAT PAYCHEX IS DOING FOR THEM IS DOWN, PLUS INTEREST RATES HAVE BEEN DOWN WHICH HURTS PAYCHEX BECAUSE THEY PLAY ON THE FLOAT BETWEEN WHEN THEY HAVE THE MONEY FOR PAYROLL AND WHEN THE PAYROLL GOES OUT. SO THEY HAVE ACTUALLY -- THEY COME OUT WITH THEIR FOURTH-QUARTER AND YEAR-END EARNINGS ON TUESDAY BEFORE THE MARKET OPENS AND THEY ACTUALLY EARLIER THIS YEAR HAD CUT THEIR EARNINGS' EXPECTATIONS ALMOST IN HALF. SOMETHING LIKE 9 TO 10 CENTS A SHARE IS WHAT THEY WERE EXPECTING COMPARED TO EARLIER HAD BEEN AS HIGH AS 18 OR MORE. AND THEIR STOCK RIGHT NOW IS A LOT CLOSER TO ITS 52-WEEK LOW THAN IT IS TO THE 52-WEEK HIGH. BUT THEY'RE VERY CONSISTENT. WALL STREET LIKES CONSISTENCY. THEY LIKE YOU TO SAY WHAT YOU'RE GOING TO DELIVER; THEY LIKE YOU TO DELIVER EVEN IF YOU LOWER YOUR EXPECTATIONS. IT'S WARNINGS AND SURPRISES THEY DON'T LIKE. AND PAYCHEX IS EXTREMELY CONSISTENT.

>> Gary Walker: UNEMPLOYMENT NUMBERS DUE OUT SOON. ARE THESE GOING TO BE LOCAL NUMBERS?

>> Ellen Rosen: THEY'RE DUE OUT TODAY. IT WILL BE LOCAL NUMBERS. WE'LL LOOK AT THE ENTIRE REGIONAL AREA, THE SIX-COUNTY AREA. WE'RE REALLY ANXIOUS TO SEE HOW THIS IS GOING COMING INTO THIS PERIOD OF SEASONAL HIRING AND WHAT'S GOING ON. THESE WILL BE THE NUMBERS FOR MAY AND WE'LL REALLY SEE HOW -- WE HAD BEEN TRACKING. NATIONALLY IT'S BEEN GOING DOWN; WE WEREN'T REALLY SEEING THAT YET, SO WE'RE REALLY INTERESTED TO SEE WHERE THAT GOES.

>> Gary Walker: WELL, WE WERE THINKING THAT IT MAY BE TRENDING DOWN IN MONROE COUNTY, BUT WE'LL HAVE TO WAIT FOR THOSE NUMBERS TO FIND THAT.

>> Ellen Rosen: RIGHT. THEY'LL BE OUT.

>> Gary Walker: I DO WANT TO ASK YOU THIS, THOUGH. WE HAVE A LOT OF INDICATORS ABOUT HOW HEALTHY IS THE LOCAL ECONOMY. NOW, UNEMPLOYMENT RATES, UNEMPLOYMENT FIGURES, ARE ONE OF THOSE INDICATORS. IS THAT A SIGNIFICANT INDICATOR? IS THIS A BIG DEAL OR IS IT JUST A MINOR INDICATOR REFLECTING THE HEALTH OF OUR LOCAL COMMUNITY?

>> Ellen Rosen: IT'S A SIGNIFICANT INDICATOR BECAUSE IT INDICATES A COUPLE OF THINGS: FIRST OF ALL, THE HEALTH OF THE COMPANIES THAT ARE EMPLOYING THESE PEOPLE. COMPANIES HAVE TO LAY PEOPLE OFF WHEN THEY'RE NOT MEETING THEIR EXPECTATIONS. AND ALSO IF YOU LOOK AT GROSS DOMESTIC PRODUCT, CONSUMER SPENDING IS THE VAST MAJORITY OF THAT. IF PEOPLE DON'T HAVE JOBS, THEY CAN'T SPEND SO THEY'RE NOT OUT IN THE RETAIL STORES; THEY'RE NOT BUYING CARS; THEY'RE NOT IMPROVING THEIR HOMES. SO IT HAS A RIPPLE EFFECT THROUGHOUT THE ECONOMY.

>> Gary Walker: I GUESS TRADITIONALLY, NEXT MONTH WHEN ALL THE HIGH SCHOOLS AND ALL THE COLLEGES LET OUT, THOSE NUMBERS GENERALLY TEND TO RISE.

>> Ellen Rosen: WELL, BUT THAT'S BEEN VERY DIFFICULT. THE PEOPLE WE'VE TALKED TO, THE COLLEGE GRADUATES -- WE HAD A STORY A FEW WEEKS AGO THAT THEY ARE REALLY HAVING TROUBLE FINDING NOT JUST JOBS BUT EVEN UNPAID INTERNSHIPS THIS SUMMER. THINGS ARE REALLY TIGHT. THE JOBS THAT HAVE TRADITIONALLY BEEN OPEN TO THEM ARE BEING TAKEN BY PEOPLE WHO ARE OUT OF WORK.

>> Gary Walker: NOW, THESE NUMBERS WON'T REFLECT THAT, BUT NEXT MONTH'S NUMBERS WILL REFLECT --

>> Ellen Rosen: THE COLLEGE KIDS HAVE REALLY BEEN OUT SINCE MAY, SO THIS MAY START REFLECTING SOME OF THAT. THE HIGH SCHOOL KIDS ARE JUST COMING OUT NOW. GRADUATIONS ARE THIS WEEKEND. BUT MOST OF THOSE KIDS, IF YOU DIDN'T HAVE A JOB LINED UP MONTHS AGO, IT'S GOING TO BE REALLY TOUGH TO FIND ONE NOW.

>> Gary Walker: WELL, WE'LL LOOK FORWARD TO SEEING THOSE. I WAS TALKING TO YOU EARLIER ABOUT A STORY YOU ARE WORKING ON, WHICH I FIND REALLY INTERESTING, PEOPLE CHANGING CAREERS. I'M THINKING, "WELL, HERE'S A C.E.O. WHO'S LOOKING FOR A CAREER CHANGE TO THE GOVERNOR." SO I GUESS THAT CAN HAPPEN AT A LOT OF DIFFERENT LEVELS.

>> Ellen Rosen: WE FOUND A VARIETY OF PEOPLE FOR A VARIETY OF REASONS -- PERSONAL, PROFESSIONAL, ECONOMIC REASONS, PEOPLE THAT GET LAID OFF, PEOPLE WHO ARE JUST LOOKING FOR A DIFFERENCE IN THEIR LIFE. AND THEY HAVE MADE SOME PRETTY RADICAL CHANGES. IT'S NOT JUST GOING FROM ONE JOB TO ANOTHER BUT COMPLETELY CHANGING UP THE CAREER AND THEY'RE OFTEN GIVING UP A GREAT DEAL OF THEIR INCOME TO TRY TO FIND A BETTER QUALITY OF LIFE. SO WE'RE LOOKING AT THAT. ANOTHER THING WE HAVE THAT'S VERY INTERESTING IN SUNDAY'S PAPER IS WE HAVE ANOTHER INSTALLMENT OF OUR "UNDERSTANDING OUR ECONOMY" SERIES, AND WE'RE GOING TO LOOK AT GROSS DOMESTIC PRODUCT, WHAT MAKES IT UP, HOW IT'S PUT TOGETHER, WHERE THE NUMBERS ARE CALCULATED, AND WHAT IT'S BEEN DOING OVER THE LAST 20 YEARS OR SO.

>> Gary Walker: DOMESTIC PRODUCT WOULD MEAN FOR OUR AREA?

>> Ellen Rosen: NO, THIS IS NATIONWIDE, WHICH IS A HUGE INDICATOR. I MEAN, THE NUMBERS WERE OUT TODAY. THE TRADE DEFICIT HAS BALLOONED AGAIN TO A RECORD HIGH. THE NUMBERS WERE OUT TODAY. SO WE'LL BE LOOKING AT HOW MUCH -- THAT'S THE VALUE OF GOODS AND SERVICES THAT THE COUNTRY PRODUCES AND WHERE THAT'S GOING. IT'S GONE UP MARKEDLY. WE'RE GOING TO EXPLAIN TO YOU HOW THAT NUMBER IS CALCULATED AND WHAT GOES INTO IT, WHAT ARE THE PIECES THAT GO INTO IT.

>> Gary Walker: BUT IS THERE ANY INDICATOR WE CAN LOOK AT LOCALLY? IS THERE LIKE A LOCAL GROSS NATIONAL OR GROSS LOCAL PRODUCT?

>> Ellen Rosen: YOU REALLY DON'T DO -- PROBABLY THE CLOSEST THING TO THAT, THERE'S REALLY NO LOCAL G.D.P. THERE ARE A NUMBER OF THINGS YOU CAN PUT TOGETHER, AND WE DO RUN THOSE SUNDAY IN THE PAPER, TOO. THERE'S THE LOCAL PURCHASING MANAGERS GIVE OUT THEIR NUMBERS FOR WHERE THEY THINK THE ECONOMY IS GOING, HOW SUPPLIES ARE GOING, AND OBVIOUSLY THERE'S LOCAL UNEMPLOYMENT NUMBERS AND THINGS LIKE THAT, LOCAL HOUSING STARTS, OTHER THINGS LIKE THAT, CAR SALES... SO YOU CAN SORT OF PIECE IT TOGETHER LIKE THAT BECAUSE THOSE ALL GO INTO THE G.D.P.

>> Gary Walker: LET ME JUST TOUCH ON THE CAREER CHANGES AGAIN. SO WHAT'S THE MARKET LIKE FOR BROADCASTERS OUT THERE FOR CHANGING CAREERS? (Laughing)

>> Ellen Rosen: I DON'T KNOW. IT DEPENDS. I MEAN, WE HAVE GOT A CASE OF A COUPLE OF EXECUTIVES WHO HAVE GONE ON TO DO THINGS LIKE BECOME A CHOIR MASTER OR GO BE A MAPLE SYRUP FARMER. SO IT DEPENDS ON HOW ADVENTUROUS YOU ARE IN TERMS OF CHANGING YOUR CAREER.

>> Gary Walker: WELL, THEY MUST HAVE SOME FINANCIAL SECURITY TO BE ABLE TO DO THAT, THOUGH.

>> Ellen Rosen: I GUESS FOR SOME PEOPLE, MONEY ISN'T EVERYTHING.

>> Gary Walker: WE'LL LOOK FORWARD TO SEEING THAT. THAT'S GOING TO BE THIS SUNDAY?

>> Ellen Rosen: YES.

>> Gary Walker: ELLEN, THANK YOU FOR JOINING US. wxxi.org/ntk.

(Music)


>> Gary Walker: NOW, DON'T FORGET THAT YOU CAN READ MORE ABOUT THIS YEAR'S ELECTIONS ON OUR WEB SITE. JUST LOG ONTO wxxi.org/ntk.
THAT'S ALL THE TIME WE HAVE FOR TONIGHT'S PROGRAM. WE'LL SEE YOU NEXT WEEK.

(Music)

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