Cuomo Touts Progress, Raises MWBE Target to 30 Percent

New York is ramping up efforts to increase its contracting with minority- and women-owned businesses, raising the goal to an ambitious 30 percent of all state contracts going to such companies—the highest target in the nation, according to state officials.

The state also announced that it has awarded an impressive 25 percent of state contracts to such companies, referred to as MWBEs, exceeding a 20 percent target set early in Gov. Andrew Cuomo’s tenure.

In announcing the latest state MWBE goal, Cuomo likened the program to other critical social justice initiatives ranging from affordable housing to minimum wage to public education.

“Why the MWBE program? The same reason when Willie Sutton was asked, ‘Why do you rob banks?’ Because that’s where the money is,” Cuomo said at the fourth annual New York State MWBE forum in Albany on Wednesday before signing legislation aimed at certifying more eligible firms. “The state gives out $8 billion in contracts every year—$8 billion. That’s a lot of zeros, my friends.”

In his speech, Cuomo also referenced his time as secretary of Clinton’s Department of Housing and Urban Development and said he fought discrimination by prosecuting hate crimes and cross burnings.

“Now we do not have that kind of discrimination in the state of New York, luckily,” he said. “But we have discrimination. I call it ‘discrimination with a smile.’ It’s more subtle, but it’s just as insidious.”

Cuomo said that while such racism is not as obvious in New York as in other parts of the country, the state still must take steps to abolish it and help level the playing field for minority groups, as well as for women who face discrimination.  

A quarter of state contracts going to MWBEs, according to state figures, equals about $2 billion of the total $8 billion given out each year.

When David Paterson took office as governor in 2008, only 5 percent of state contracts went to MWBEs. In 2010, a study commissioned by the state found that MWBEs were being largely excluded from state contract participation. Paterson increased the state’s goal to 10 percent.

“I took his 10 percent and I doubled it to 20 percent,” Cuomo said. “Well, you know what happened. We’ve exceeded the goal of 20 percent and we have hit 25 percent—the highest amount in the United States of America and we are proud of it … but I say to you today there is still more to do and we have not yet hit our height.”

Elinor Tatum, the publisher of the New York Amsterdam News and the keynote speaker at the forum, stressed the need for ongoing progress and awareness of the issues facing MWBEs all the time, not just once a year.

“There is a need [for newspapers like the Amsterdam News], because people aren’t telling our story,” said Tatum, whose readership is largely the black community. “I was asked, ‘When will black newspapers not be necessary?’ And I said, ‘When our story is told accurately every day, not just sometimes.’ … We have already started and started some new things as well because we have a future, we have a legacy and we have a commitment that we need to keep to our next generation.”

After his speech, Cuomo was asked by reporters what the state is doing on behalf of white male business owners. Cuomo replied, “They get the other 70 percent.”

Later this month City & State will hold its own MWBE forum, “On Diversity.” The forum, set for Oct. 21 in New York City, will include Alphonso David, the deputy secretary for civil rights for New York State, and state Chief Diversity Officer Mecca Santana—both of whom spoke at Wednesday’s forum—as well as Maya Wiley, counsel to New York City Bill de Blasio.