BOCES Breaks Ground On $96M Wilton Campus To Train Students For High-Demand Careers
BY ROD BACON
For years, Emmett Smith, co-founder and CEO of Saranac Lake-based Northern Power & Light, and Dr. Jeffrey Flagg, economic development director for the City of Glens Falls, discussed hydro-based projects but couldn’t find one that was actionable.
That changed when the Glens Falls Community Hydro Project went live on May 21. The project is delivering clean, renewable energy to National Grid customers in Warren, Washington, and Saratoga counties and beyond.
Northern Power & Light has partnered with Boralex Hydro Operations, Inc., a developer of environmentally friendly projects that owns and operates the Warrensburg Dam. They operate 199 wind, solar, and hydro facilities in the United States and abroad.
Customers enrolling in the program are guaranteed a 5 percent saving on their energy bills. Qualifying low-income customers may see savings of up to 25 percent.
Cost savings are due in part to the recent implementation of the H-Value, a pricing structure that enables small-scale hydro producers to participate in New York state’s Community Distributed Generation program. This policy reform allows the energy producers to provide cost savings for customers, similar to incentives available for solar producers.
To be eligible for the program a facility must have five megawatts or less of capacity. The old power grid model had a large central fossil fuel or nuclear generating station. Distributed generators are distributed throughout the territory
Continued On Page
The Albany Med Health System Elects Daniel T. Pickett III To Chair Its Board
Capital Region entrepreneur Daniel T. Pickett III has been elected chairman of the Albany Med Health System board of directors, beginning a two-year term July 1.
Pickett is founder and CEO of AptiHealth, a behavioral-healthcare company that connects high-need patients with comprehensive care, and CEO of Hudson River Capital Holdings, a private investment firm. He previously served as president of Zones and CEO of nfrastructure, two global technology companies, and joined the Albany Med board in 2012 when it oversaw only Albany Medical Center and Albany Medical College. Today, the board includes 30 members guiding a system that spans multiple hospitals, outpatient sites, the Albany Med Research Institute and partnerships with affiliated organizations across northeastern New York.
“A strong health-care network allows communities to thrive,” Pickett said. “Having 16,000 colleagues who live and work here means we understand local needs. It is an honor to lead a System that remains independent and able to define the future of care. As we move forward, we must develop new approaches to meet patients where they are.”
Pickett plans to focus on workforce development, expand access to specialized services
such as cardiac and oncology care, and deepen integration among the System’s hospitals. The Albany Med Health System, the region’s largest private employer, offers more than 60 specialty
BY PAUL POST
BOCES officials are eagerly awaiting groundbreaking for a $96 million campus that will increase capacity for current programs such as construction trades while making new offerings such as green energy and a standalone electrical course possible.
Plans call for three buildings totaling 290,000 square feet on 25 acres at the corner of Ballard and North roads, just off Exit 16 in Wilton. Two buildings would be for special education (grades K-6 and 7-12) and a third for career and technical classes.
The complex would replace the current Southern Adirondack and F. Donald Myers learning centers in Hudson Falls and Saratoga Springs, respectively.
A BOCES program for special education
elementary students at the Sanford Street School in Glens Falls would also move to Wilton. “Currently we tend to have a wait list for our programs,” BOCES District Superintendent Turina M. Parker said. “So we’ll be able to take more students into current programs. And some programs we’re only able to offer at one center now. All programs will be offered at the new center, so it expands our capacity to serve all 31 school districts in the five counties we serve. It expands our reach for students across the region.”
Approximately 1,275 students from Warren, Washington, Saratoga, Hamilton and Essex counties are currently enrolled in local BOCES district courses, and some from the immediate Capital District as well.
Groundbreaking on the new center is
72 New Units Added At Greylock’s Broad Street Glens Falls Location
BY ROD BACON
A facility that has been a mainstay in the region’s storage business since 1946 has been rebranded and undergone significant upgrades.
In 2022, Pittsfield, Massachusetts-based Mountain Capital Partners LLC purchased the storage operation of Mullen Moving and Storage from owner Martin Mullen. The company was founded by Patrick Ryan Mullen, who held a stevedore license, in the late 1800s. He moved the company to North Adams, Massachusetts, in the early 1900s and it later expanded to Glens Falls, Saratoga Springs, and Schenectady.
Mountain Capital Partners, which owns other storage facilities in Pittsfield and Adams, Massachusetts, and Schenectady, New York, is operated by Anthony Massimiano and several others. They recently rebranded the local facility as Greylock Storage and started the process of making it the premier site for safe records storage in Glens Falls.
“We had been looking at the acquisition for quite some time, and felt the storage and warehousing part of the business was a good investment,” said Massimiano. “We viewed it as an accretive addition to our portfolio.”
Significant improvements have been made at the site. The original 10,000-square-foot
Powered by a hydroelectric generating plant at the Warrensburg Dam, the region is benefitting from renewable energy through the Glens Falls Community Hydro Project.
Courtesy of Advokate
Architectural rendering of the new $96 million BOCES campus in Wilton, scheduled to open in 2027. The facility will expand access to career and technical education, special education, and workforce training.
LEARNERS
structure has been repainted and has a new roof. A secured building with 24-hour video surveillance, it houses Greylock’s records business and two floors of temperature controlled storage
Daniel T. Pickett III has been elected chairman of Albany Med Health System board of directors.
The former Mullen facility has been completely revamped to provide clients advanced storage. Glens Falls Business Journal
Daniel T. Pickett III
Continued From Page 1
services across 125 locations in New York’s Capital Region and the Hudson Valley, with an annual economic impact exceeding $2 billion.
Recent expansions include bringing pediatric specialties to communities that previously lacked them, launching mobile health units to serve rural areas, and investing in graduate medical education partnerships to train the next generation of providers. The System also continues to invest in telehealth and remote monitoring to reach patients in their homes and reduce barriers to care. Through charity-care programs and community clinics, Albany Med provides free or discounted services to underserved populations.
“Dan’s vision and commitment to innovation will help us build on our success,” said Dennis P. McKenna, MD, president and CEO of Albany Med. “He knows our community and understands what it takes to drive quality, accessible health care.”
Pickett succeeds Robert T. Cushing, who chaired the board since 2013. Under Cushing’s leadership, Albany Med opened the $360 million Patient Pavilion in 2018 and completed the $110 million Park South redevelopment in 2021. He also oversaw strategic affi liations with Columbia Memorial Health in 2017, Saratoga Hospital in
2018, Glens Falls Hospital in 2019 and the Visiting Nurses, forming the largest locally governed health system in northeastern New York.
In 2020, the Massry Family Children’s Emergency Center became the region’s first freestanding pediatric ER. In November 2024, the System went live on Epic, unifying patient records and giving patients a single portal to access their health information. Through the Albany Med Research Institute, the System supports scientific discovery in cancer, neuroscience and cardiovascular health.
Cushing retired as executive vice president and CFO of Trustco Bank in 2015 and will continue serving on the board. “Bob’s leadership during periods of growth and crisis—especially through the Covid-19 pandemic—has left an indelible mark on our System,” Dr. McKenna said. “We are grateful for his selfless service and dedication.”
With Pickett at the helm, Albany Med aims to further strengthen its workforce pipeline, enhance community partnerships, advance research initiatives, maintain financial stability through prudent fiscal management, expand residency and fellowship programs, and uphold its mission of delivering excellent, accessible care to the three million people it serves.
Freedom Boat Club Expands To Bolton Landing With New Lake George Location
Freedom Boat Club Lake George has announced the opening of a second Lake George location in Bolton Landing.
Heading into their ninth summer providing hassle-free boating on Lake George, Freedom Boat Club saw a need to expand their services to meet the growing demand for membership boating. The new location will be located at Water’s Edge Marina, 47 Sagamore Rd, Bolton Landing, which underwent a change in ownership in January of this year. There will initially be five new boats available at the Bolton Landing location in addition to the twenty boats located at their flagship location at Queen Boat Co in Dunhams Bay.
Freedom Boat Club members pay a one-
time entry fee and monthly dues to utilize the fleet of boats while the club takes care of purchasing, docking, cleaning, insuring and maintaining the boats.
Owners Matt and Rebecca O’Hara are excited to be offering a new boating experience for members. “We have had a waitlist for membership for years and are thrilled to have the opportunity to add membership capacity in a great new location. Water’s Edge is the perfect launching point for members to explore parts of the lake that were less accessible boating out of our Dunhams Bay location,” said owner Matt O’Hara. “And members will definitely enjoy all that the town of Bolton Landing has to
Continued On Page 10
Freedom Boat Club has launched a second Lake George location at Water’s Edge Marina in Bolton Landing, expanding member access to new parts of the lake for the 2025 boating season.
Walmart Quaker Ridge Celebrates Major Expansion, Adds Jobs And New Services
BY PAUL POST
Walmart on Quaker Ridge Boulevard opened in 2011 to take pressure off the larger Supercenter on Route 9 in Queensbury.
But sales have been so strong that a 5,000-square-foot expansion and redevelopment became necessary, which store leaders, employees and customers alike celebrated with a recent grand reopening.
“This store is truly the footprint of what Walmart is trying to build,” Market Manager Robert Hazard said. “This store has grown faster than Walmart ever expected. It’s more than doubled in volume. Now we’re ready for the next 10 years of business.”
A new pharmacy, a relocated 3,000-squarefoot online pickup and delivery area, larger grocery and new lines of apparel such as Reebok and Jessica Simpson are among the many highlights.
A huge arch of blue, gold and white balloons greeted customers to the rededication ceremony.
Everyone on hand was treated to a large assortment of blue and gold-frosted cupcakes, joined by life-size Pillsbury Doughboy and M&M’s costumed characters.
Store Manager Rick Beaver presented $1,000 donations to three local non-profits – West Glens Falls EMS, Lucky Puppy Rescue and Project Cameron, which provides new books to 22 hospitals in upstate New York.
Throughout the store, vendors representing products such as Gatorade, Sprite and various snack bars treated customers to free samples, and a tasty chocolate fountain was also on hand.
Red Bull’s display featured a Formula I race car simulator, giving people a chance to test their high-speed driving skills.
Much of the Route 9 Walmart’s business comes from Queensbury and towns to the north.
Quaker Ridge Walmart is strategically located to serve Glens Falls and Washington County, drawing customers from Greenwich to Whitehall and neighboring west-central Vermont as well.
The Quaker Ridge store is Number 4403 in the Bentonville, Arkansas-based company’s chain of 4,605 U.S. stores. Additionally, it operates 10,586 stores and clubs in 24 countries under various names.
With revenue of more than $611 billion in 2023, Walmart is the nation’s largest retailer,
followed by Amazon ($514 billion), Costco ($242 billion) and The Home Depot ($152 billion).
The company expects sales to increase 3.5 percent to 4.5 percent during its fiscal year’s second quarter, but officials are concerned about price hikes caused by Trump Administration tariffs.
Walmart Chief Financial Officer John David Rainey recently told CNBC, “We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb. It’s more than any supplier can absorb. And so I’m concerned that the consumer is going to start seeing higher prices. You’ll begin to see that, likely towards the tail end of this month (May), and then certainly much more in June.”
To help employees deal with price changes, Walmart is adopting a new digital shelf labeling system that replaces paper labels. Until now, employees had to manually change labels each time there was a price change. Now, a computer does the job by changing the numbers on little digital screens in front of each product on the shelf.
“It’s going to make it easy for employees to make sure everything is priced correctly and accurately,” Beaver said.
With its recent expansion, the Quaker Ridge store has added 33 more jobs, bringing total payroll to 350 full- and part-time employees.
“We have a lot of tenured associates,” Beaver said. “But we’re still hiring, looking for overnight stocking, day stocking and online pickup and delivery personnel.”
Frequent shopper Judy Long said she’s pleased with the store’s new layout and large signs with giant-sized lettering that make departments easier to find. “Now I know where everything is,” she said. “I like how they redid it. I mostly come for groceries, but other things, too, like clothing.”
In addition to Black Friday, Beaver said the store’s busiest days are typically around Mother’s Day, for garden center sales, and during the Adirondack Balloon Festival in September.
“That’s a big event,” he said. “Sometimes on weekends we have balloons landing in our parking lot because they land in the first place they find. It’s pretty cool because the whole community gets involved with it. This is more of a community-type store. Walmart needs this community.”
Trustco Bank Opens New Downtown Glens Falls Branch With Drive-Through And Adirondack
BY PAUL POST
Trustco Bank has a new location in downtown Glens Falls at 37 Bay Street. The branch moved there from its previous home at the top of Glen Street hill, near Park Street, and occupies a former Citizens Bank building that closed several years ago.
“We had been looking at this building for a couple of years,” Trustco branch Manager Kathryn Nasr said. “The previous location didn’t have a drive-through and trying to do business, with lack of parking, was a nightmare especially when Cool Insuring Arena had a big event going on.”
In addition to a drive-through and more
parking, the Bay Street building is generally more accessible with a spacious interior, colorfully designed with an Adirondack theme.
One wall has a timeline with historic photos featuring milestones from the bank’s and City of Glens Falls’ past. Trustco was previously Schenectady Trust.
The branch office expanded from three to four employees when moving to Bay Street, with the addition of a new teller.
The branch has a 24-hour ATM. Lobby and drive-through hours are 9 a.m. to 5 p.m. Monday and Wednesday, 9 a.m. to 3 p.m. Tuesday, 9 a.m. to 6 p.m. Thursday and Friday, and 9 a.m. to 1 p.m. Saturday.
Walmart’s Quaker Ridge Boulevard store recently held grand reopening ceremonies to mark completion of a 5,000-square-foot expansion and renovation. The store employs 350 people. Paul Post
Trustco Bank branch manager Kathryn Nasr welcomes customers to the bank’s new location at 37 Bay Street in downtown Glens Falls.
Courtesy Trustco Bank
BY ROD BACON
Aficionados of the classic chrome-sided diners that offer comfort foods at almost all hours of the day and night know that Silk City Diners are the gold standard of such establishments.
Founded by Everett Abbott Cooper in Patterson, New Jersey, the company produced approximately 1,500 diners between 1926 and 1966. Each was tagged with the year and order in which it was built; for example, 5607 would be the seventh diner manufactured in 1956.
In 1950, Phillip Patenaude purchased one and had it shipped to Lake George, where it stood at the intersection of Routes 9 and 9L until a highway configuration in the 1960s forced it to move to its present location. Originally named the Point Diner, Patenaude rechristened it the Prospect Mountain Diner after the move.
In 1968, Patenaude sold the diner to Arthur Leonhard, who built an adjoining dining room called the Rickshaw that served authentic Chinese food until 1991. The Rickshaw was then renamed the Lighthouse Cafe and Lounge. During his career he also owned Lucille’s restaurant in the village as well as Topside on the second floor of the same building.
Pat Humphrey, the current owner, worked with Leonhard, her significant other, at all the restaurants he owned. When he passed away in 2013 she inherited the Prospect Mountain Diner.
In 2007, a fire started in the air conditioning units in the addition and the smoke damage resulted in the entire structure being torn down. By this time, of course, Silk City Diners was no longer manufacturing the classic structures but Humphrey wanted to continue the legacy built up over the previous decades. She traveled to Atlanta, Georgia, and contracted with Dinermite Diners to construct a replacement for the one that burned.
While the present diner gives off the same nostalgic vibe as the original, it is a bit smaller and has fewer chrome highlights on the inside.
When the deck is open during the summer months it can accommodate 74 patrons.
Some things have remained the same since the beginning, however. Stephen Allen, the chef/ kitchen manager, has been with the diner since he was 16 years old. His father, Edward, was the chef for years and Stephen acquired his culinary skills from him. When Edward passed away, Stephen stepped into the role. In addition to cooking, he manages the kitchen staff and is responsible for hiring and ordering supplies.
Currently, there are 15 people on staff, many of whom have been there for years. Humphrey noted
that she is always looking for qualified people to join her team in the kitchen.
“We will train them to a certain extent, and sometimes that’s worked out for us and sometimes it hasn’t” she said.
Something that has remained consistent over the years is the menu. While there have been some requests for vegan or vegetarian offerings, they are not frequent enough to justify adding them to the menu, according to Humphrey.
“Diner patrons like the consistency of the comfort foods available here,” she said.
Humphrey believes in supporting other area businesses. In addition to purchasing supplies from US Foods, Sysco, and Performance Food Group, her roster of suppliers is rounded out by Jacob & Toney’s, Chris Coffee, Candy Mountain Maple Syrup, Thomas Poultry, and Lox of Bagels.
Since the Prospect Mountain Diner has been operating successfully for so may years, Humphrey doesn’t do much formal marketing. There is a website and she advertises on local tourist maps and in the Lake George Mirror.
“Positive word-of-mouth is the best advertising, and we get lots of that,” she said.
Currently, the Prospect Mountain Diner is open Monday, Thursday and Friday, 7 a.m.-2 p.m.; Saturday and Sunday, 7 a.m.-3 p.m.
To learn more about the diner and peruse their menu visit prospectmountaindiner.com.
The Prospect Mountain Diner, a Lake George staple since 1950, serves up classic comfort food.
GLENS FALLS BUSINESS JOURNAL
Those Facing Health Challenges Receive Compassionate Care From Home Instead
BY ROD BACON
It’s a fact of life that as people age they often lose the ability to perform the daily tasks they once could. It’s also a fact that one’s home is what provides the greatest amount of comfort and peace of mind when dealing with life’s challenges.
Home Instead, founded in 1994 in Omaha, Nebraska, by Paul and Lori Hogan, is a non-medical senior care company with over 1,200 franchised locations in the United States and abroad.
In 2000, Nelson Carpenter, who had retired from a 33-year career in both the public and private sectors, became a Home Instead franchisee when he opened an office in Gansevoort serving Saratoga, Warren and Washington counties.
“He researched home care companies and decided Home Instead was the best one with which to partner,” said his daughter, Maureen Hopkins, R.N., general manager and co-owner. “I came on board later to help out in the office for a while, discovered I loved it and never left.”
Carpenter was director of employee health benefits for the New York City Mayor’s Office of Labor Relations and later deputy director of the New York State Governor’s Office of Employee Relations. In the private sector he served as vice president of Value Health, Inc. and national vice president of Prudential Healthcare.
After moving to the area he served on the board of directors of the Senior Center of Saratoga Springs, the Visiting Nurse Services Foundation of Schenectady and Saratoga Springs, and the Alzheimer’s Association of Northeastern NY.
Hopkins is a 2002 graduate of the University of Maryland. Prior to joining Home Instead she worked in Manhattan as an event planner, a public relations associate, and an elf in the Lord and Taylor window during the holiday season. She also spent time in Maui, where she developed a passion for scuba diving.
She noted that it is extremely gratifying to get calls from the sons and daughters of clients telling her they don’t know what they would do without Home Instead.
“I think we really make a positive impact on the community,” she said.
According to the New York State Department of Financial Services, the annual cost of care in a nursing home is approximately $159,000 per person while home care averages approximately $66,000 per person annually.
Currently, the Gansevoort office has 93 trained caregivers providing services to 82 clients in the tricounty region. Caregivers generally live within a 20-30 minute drive of the people they serve.
Compassionate in-home care is provided to those dealing with Alzheimer’s and Dementia, chronic illness, and hospice needs. There are also transportation, companionship, and home helper services.
Formal training is not required to become a caregiver, but they are instructed in-house about how to keep themselves and the clients safe, and how to form
relationships that are specific to the client’s needs. There is also specialized training for Alzheimer’s patients, those suffering from arthritis, or those needing hospice care.
Caregivers earn $38 per hour on weekdays and $41 per hour on weekends. If they are caring for a couple they earn $6 more per hour.
There are several ways Home Instead supports the community, one of which is Be A Santa To A Senior. They have participated in this initiative for the past 20 years. They get names from local agencies like the Office for the Aging and lower income housing projects, and provide what Hopkins describes as “holiday cheer.”
“The recipients are either financially needy or socially isolated, and almost always they’re both,” she said.
In addition, Home Instead is a sponsor of the Alzheimer’s Association’s fall block event. They also conduct training sessions at area senior centers.
While word-of-mouth garners the majority of their clients, they do visit hospitals and rehabilitation facilities to explain the benefits of in-home care.
Support staff at the Gansevoort facility includes Maria Spagnnola, community relations director; Laurie Glogowski, client care manager; Marsha Scotti, client care manager; Susan Clayton, recruitment and engagement coordinator; Georgia Scaringe, bookkeeper; and Griffin, official greeter, a mixed-breed rescue that loves to meet new caregivers and get treats and rubber balls from staff.
Home Instead is located at 12 Mountain Ledge Drive, Suite 3, in Gansevoort.
For further information about how Home Instead can provide compassionate care for your loved ones, go to homeinstead/gansevoortny.com.
BY PAUL POST
A $340,000 renovation is positioning Southern Adirondack Independent Living (SAIL) to better serve the more than 7,000 clients it serves each year.
Project highlights include a new roof; a re-milled, regraded and resurfaced parking lot and a totally revamped grand entryway at the non-profit agency’s building, at 71 Glenwood Avenue in Queensbury.
“We’re really working to make SAIL a regular household name that promotes inclusivity, belonging and welcomeness,” Executive Director Tyler Whitney said. “This brand new, nice looking, welcoming environment really lends itself to our spirit right now.”
During construction, scheduled for completion by late June, SAIL continues to serve people at Aviation Mall, in a temporary space adjacent to Auntie Anne’s.
Founded almost 40 years ago, SAIL’s mission is to help people live more independently, and demand has grown almost exponentially in recent years because Warren County has one of the state’s oldest populations age-wise.
“As people are aging, they have more temporary disabilities and are using our services a lot more,” Whitney said.
Equipment loans for things such as wheelchairs, crutches and walkers is one of SAIL’s most wellknown and popular services, totally free to eligible clients. But it’s one of just 15 services the agency provides in a territory stretching from Columbia and Greene counties north to the Canadian border.
In addition to Queensbury, SAIL has satellite offices in Plattsburgh and at Wilton Mall. Other services run the gamut from health insurance to advocacy, education about disability and health-related topics, and helping families understand options to avoid long-term nursing home stays.
“As state and federal programs evolve, people need advice and counseling on how to move forward,” Whitney said. “Our goal is always to keep a person living safely and independently for as long as possible in their community. We give them all the tools and resources needed for them to make that choice.”
“We can help people enroll in any type of insurance in the New York State marketplace, and assist with Medicaid or Medicare issues,” Whitney said. “We also help people applying for SNAP (Supplemental Nutrition Assistance Program) benefits and we can advise people who have Social Security questions such as, What will the impact be if I go back to work?”
SAIL continues to provide all of these things while operating out of Aviation Mall. The only thing it can’t do for now is take back equipment loans as sanitizing apparatus couldn’t be moved to the mall.
The agency provides more than 23,000 services annually because quite often, many of its 7,000 clients need more than one thing.
One of SAIL’s most unique aspects is that more than half its 40-person staff and board members have some type of disability themselves. So when clients need help, they’re assisted by someone who can genuinely empathize with their situation.
“Whenever you’re sitting with someone at the center, while they may not understand the exact challenges you face, they also understand what it means to be a person who has a disability,” Whitney said.
SAIL’s $3.1 million budget is comprised of state and federal funds and grants from private donations. The current renovation, by Argyle-based Hunt Companies, was made possible by a state grant dedicated specifically to capital improvements.
“We’ve been in our building since the late 1980s and we’ve never redone our roof or parking lot,” Whitney said. “We’ve had to piece together small fixes over the years. We saw this as a wonderful opportunity so we applied for a grant and were awarded it.”
“It couldn’t have come at a better time,” he said. “It’s an incredible opportunity for us to do things our center has really needed and focus on longevity. We hope to stay in the community as long as we can and provide these incredibly necessary services to people with disabilities in all the regions we serve.”
SAIL serves clients during renovations from its temporary location at Aviation Mall.
A Home Instead caregiver supports a senior during an in-home visit.
Courtesy Home Instead
GLENS FALLS BUSINESS JOURNAL GOTCHA COVERED OF SARATOGA
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REGIONAL STOCKWATCH
Despite a slight uptick in housing inventory and continued mortgage rates below 7 percent, existing home sales in New York State declined in April, according to the housing report released today by the New York State Association of REALTORS® (NYSAR).
Closed sales of homes fell 6.2 percent in April, from 7,428 homes in 2024 to just 6,968 units last month. Pending sales inched up to 9,565 sales in April 2025 from 9,471 during April 2024, representing a slight 1.0 percent increase. New listings of homes in the Empire State rose 5.6 percent, from 13,246 listings in April 2024 to 13,989 listings in 2025.
Statewide housing inventory was up 3.1 percent in year-over-year comparisons, from
25,379 homes on the market last April to 26,165 units available in April 2025.
Mortgage rates remained under seven percent for the 14th consecutive month during April according to Freddie Mac. The average rate on a 30-year fixed rate mortgage during April closed at 6.73 percent. By comparison in April 2024, the rate sat at 6.99 percent.
The median price of homes in New York rose again, marking 21 consecutive months of gains. In April 2024, the median home price was $410,000, which is 3.7 percent below the $425,000 price in April 2025.
Additional data is available at http:// www.nysar.com/industry-resources/ market-data.
Business Report
Business Report
Should you trust a ‘finfluencer’? The End of American Exceptionalism?
PROVIDED BY MEGHAN MURRAY
In the age of social media, it’s easy to fi nd advice on just about anything — including how to manage your money. Content creators known as “fi nfluencers” — short for fi nancial influencers — use platforms like TikTok, YouTube and Instagram to share their takes on investing, budgeting and building wealth. Many of them are charismatic and relatable, and they often speak from personal experience. But while their content may be engaging, taking fi nancial advice from a fi nfluencer without digging deeper can come with significant risks. While some fi nfluencers may have formal training or credentials, many do not. Instead, their influence stems from their popularity rather than professional experience. But popular advice may not necessarily be good advice. A 2025 study by the Swiss Finance Institute even found that unskilled fi nfluencers typically have larger followings than skilled ones. Why be cautious?
For young or new investors, social media can make fi nance feel accessible. In fact, a 2022 FINRA study says that more than 60% of Americans younger than 35 get investing information from these platforms. But social media isn’t regulated the same way traditional fi nancial advising is, so anyone, qualified or not, can offer fi nancial tips.
Unlike traditional fi nancial advisors, fi nfluencers don’t know your unique goals, fi nancial situation or risk tolerance. And likely, they’re not licensed (you can check here: Check Out Your Investment Professional | Investor.gov). Even well-meaning guidance might lead you down a risky path if it’s not tailored to your needs. And unfortunately, some fi nfluencers have exploited the trust they build with followers to promote questionable investments or outright frauds.
Warning signs to watch for
Here are a few signs that a fi nfluencer’s advice may be worth avoiding:
Unrealistic “get-rich” promises: Claims like, “Turn $500 into $50,000 in a year,” are highly improbable and may indicate a scam.
Hurry, hurry: Be wary of advice that pressures you to act fast or plays on fear of missing out. Important fi nancial decisions shouldn’t come with a countdown clock.
Flashy displays of wealth: Images of luxury cars, watches or cash can be more about generating views than offering sound advice. If a fi nfluencer is trying that hard to convince you to take an action, it often means they will
profit — perhaps they’ll get paid to promote a product or service, or earn a fee for referring you, or are trying to boost clicks and followers to earn more.
What you can do
Do your own homework. Don’t take fi nfluencers’ advice at face value. Cross-check it with reliable sources. The fi nfluencer may even be under investigation by a federal or state securities regulator. Talking to a licensed fi nancial advisor you trust can help you discern good advice from the bad.
Recognize confl icts of interest. If a fi nfluencer promotes a product or service, fi nd out if they’re being paid to do so. And remember, online personalities make money by generating high viewership, not because their advice has a track record of success.
Use common sense. When something sounds too good to be true, it usually is. And of course, never disclose your bank or brokerage account numbers to a fi nfluencer, and never send money.
Finfluencers can make fi nancial topics more engaging and accessible. But when it comes to your money, a social media video from someone who doesn’t know you is no substitute for informed, personalized guidance. Take the time to verify, research and, when in doubt, seek advice from a professional.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC.
BY KENNETH J. ENTENMANN, CFA®
5/20/2025, 3:07:02 PM
For the bulk of this century, it has been said that America was exceptional. It had the world’s strongest military. It had the world’s largest and richest economy. It had the world’s reserve currency. It had the world’s largest, safest, and most liquid financial markets. Most of the world’s largest and most innovative companies were American. The United States was a juggernaut. American Exceptionalism!
Yet, somehow, in just a few months, there are rumblings of the end of American Exceptionalism. Prominent financiers speak of damage to the “American brand.” The “Magnificent Seven” tech sector received a wake-up call when the Chinese Deepseek AI model was announced, which showed that the path to AI dominance would be competitive. And finally, Moody’s became the last of the major bond rating agencies to downgrade the last U.S. Treasury bond rating from AAA to AA.
Is this the beginning of the end of American exceptionalism? To paraphrase Mark Twain, the report of the demise of American exceptionalism is an exaggeration.
Apparently, several prominent financiers believe that the American brand has been damaged. Perhaps. They say our “Friends and Allies” can no longer trust the U.S. regarding military and trade. Certainly, the method of the Trump Administration’s demands for increased NATO military spending can be questioned. But the fact remains that many of our NATO “friends” are still significantly below the NATO minimum spending requirements, and even those who have committed to increased spending will not get there for several years. Given our fiscal challenges, the U.S. simply cannot afford to fund all of NATO. If calling for the end of our allies’ defense-free-riding ways is damaging to the U.S. brand, then so be it. Similarly, the rollout of the Trump trade program has been chaotic and has created great uncertainty. Our friends and allies are upset. That is understandable. But it is also very clear that these friends and allies are not free traders. They deploy a myriad of tariffs and non-tariff barriers to trade, such as a digital service tax on the U.S. tech sector, which are blatantly unfair. If calling this out is damaging our “brand,” then so be it. Regardless of the perception of the brand, the U.S. economy will remain the largest and richest consumer market in the world. Every country in the world still wants and needs to do business here. That is why there are so many ongoing trade negotiations.
The hope is they will end with a freer and fairer trade environment with our Western allies. As discussed in previous blogs over the last 12 months, we urged investors to “manage their expectations” for the U.S. equity markets. We were concerned that the U.S. equity markets were highly concentrated and highly valued. Indeed, the very idea of American exceptionalism in the U.S. equity markets drove these high valuations. After all, the U.S. equity market returns dwarfed the rest of the world since 2010. That outperformance was driven by the AI-fueled dominance of the U.S. tech sector. The “Magnificent Seven” mega tech stocks were the world’s envy. In addition, the U.S. Treasury bond market was perceived as a safe haven. The entire world was overweight U.S. growth stocks and U.S. Treasury bonds. When Deepseek was announced in January, U.S. tech dominance was questioned. At a minimum, the valuation of the Mag 7 was tested. The onslaught of the trade wars, combined with uncertain U.S. fiscal policy put pressure on the U.S. Treasury market. These factors all led to a great, worldwide rebalancing of investment portfolios. U.S. growth stocks led the
Meghan Murray is a financial advisor with Edward Jones Financial in Glens Falls.
Kenneth J. Entenmann,chief investment officer & chief economist with NBT Bank.
Courtesy Edward Jones
GLENS FALLS BUSINESS JOURNAL
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Automotive Technology Student Morgan Guilder, a senior at Queensbury High School, with a Lia Nissan representative at 2025 CTE Signing Day event on June 4.
scheduled for this fall and it’s expected to start welcoming students in September 2027.
The developer is Albany-based Columbia Development Companies whose portfolio includes the Plug Power GenDrive Global Manufacturing Center in Slingerlands and two projects currently under construction, the NYOH Regional Cancer Center in Guilderland and the 4 Wellness Way Medical Office Facility in Latham.
General contractor for the BOCES center is Albany-based BBL Construction Services.
However, buildings will be owned by the Florida-based, non-profit Community Initiatives Development Corporation and leased to BOCES for $96 million for 20 years. CIDC, which procured the land and holds the lease, has been responsible for more than $900 million including affordable housing, public facilities, dormitories, assisted living facilities and educational institutions, its website says.
“At the end of the lease we’ll have first rights to all options available to us,” Parker said. “This could be negotiating a new lease or we could consider buying the buildings.”
The Hudson Falls and Saratoga Springs
BOCES buildings, constructed in the early 1970s, are in need of substantial upgrades, which would cost an estimated $80 million without creating more space to better serve students, Parker said.
A new BOCES-owned building would cost $160 million, making the lease option more financially attractive, she said.
However, the estimated $96 million final costs and designs could adjust as the project progresses through planning, design and construction phases
The new center has the support of school officials from throughout the region.
“It was amazing the needs that are there to bring those (buildings) not only up to date, but sometimes up to code,” Johnsburg Superintendent Michael Markwica said.
Saratoga Springs Superintendent Michael Patton said, “A brand new facility in a central location would best serve the needs of our students as well as meeting the needs of our local school districts.”
Students in northern schools that currently
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This Year’s Summer Trades Camp Builds Skills, Confidence, And Career Pathways For Girls
Whoever said building and construction trades is a man’s world must be light years behind the times.
A summer camp for fifth- to seventh-grade girls has been expanded to two weeks this year, giving hands-on opportunity and exposure to the industry’s many different careers.
“On day one, last year, we put a power screwdriver in their hand and they were scared to death,” program coordinator Doug Ford said. “By day five they were working with pneumatic nailers and building vertical gardens that we donated to nursing homes. They didn’t know each other to begin with so teamwork was part of it. The transformation was incredible. It was a huge hit.”
Ford, a Curtis Lumber Company vice president, is also co-founder with Pam Stott of the Northeast Construction Trades Workforce Coalition, a nonprofit organization launched eight years ago to address the construction industry’s skilled labor shortage by promoting such careers to students and young adults.
Females represent a large untapped pool of potential employees.
“We want them to understand there’s so many
jobs within trades and not all of them are physical,” Ford said. “You’ve got project management, logistical, estimating. All these different jobs are part of trades that never get talked about. The only ones that get talked about are the guy on the roof, in a ditch or on a backhoe. We need to paint an accurate picture of all the things that are available to males and females.”
There’s plenty of financial incentive as careers in the trades can pay from $80,000 to well over $100,000 for jobs such as project manager.
The camp, held in late July, is hosted by Wiltonbased Whitbeck Construction LLC and has room for 25 girls from throughout the Capital Region.
“There is a fee, but if someone can’t afford it we find sponsorships for them,” Ford said. “We don’t turn anyone away.”
Last year’s inaugural camp had a plethora of activities from building projects to field trips.
On day one, girls built a toolbox to keep things in. Over the course of the week they built a charcuterie board, an Adirondack chair and a dodecahedron (12-sided 3D figure) that involved math, science and teamwork.
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Girls in grades 5–7 tour an active construction site as part of the expanded summer trades camp hosted by the Northeast Construction Trades Workforce Coalition and Whitbeck Construction.
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Girls also toured an active home build by Saratoga Springs-based Witt Construction and visited a DA Collins Companies stone quarry.
A Construction Olympics timed event was held on the last day, with program supporters and local media on hand.
This year, a more advanced second week is being offered, too, thanks to funding secured by state Assemblywoman Carrier Woerner. Projects will be more advanced with even more emphasis on team building.
But introducing girls to the trades is just one of the Workforce Coalition’s many initiatives.
“One of the key things for us is educating school counselors because they really don’t have the tools to talk to kids about trades,” Ford said. “Over the last eight years one of the biggest wins for us has been getting school counselors on our side and giving them the tools to work with kids.”
Recently, the Coalition hosted a large workshop for more than 40 area school counselors at the $50 million new Mohawk Harbor Arena that’s expected to open this summer. Named the M&T Bank Center, it will be home to Union College’s men’s and women’s hockey teams in addition to hosting numerous other events and conventions.
It’s part of a broader revitalization effort with plans for a new hotel nearby, also.
School counselors engaged with all the different trades on site at the arena, and then went back to LeChase Construction Service’s Schenectady headquarters for training.
“We want counselors to see that every kid, male or female, regardless of their GPA (grade point average) should know what the trades are and the opportunities that exist,” Ford said. “In the past we’ve sent kids that struggle to trades and the rest of them go to college. That’s one of the things we’re trying to change as well. It’s not college or the trades. You can go to college, get into the trades and be hugely successful.”
Alex Dominguez, son of Hall of Fame jockey Ramon Dominguez, did an Eagle Scout project at the Saratoga Race Course backstretch and got so much satisfaction from it that he left Clemson University to join the construction industry.
Ford encouraged him to spent two days each with a remodeler, home builder, commercial builder and carpenters’ union – one day in the office and one in the field – giving each one a chance to show what they do.
Soon after, Dominguez joined Greenfield-based Munter Enterprises and is enjoying a successful career there.
“Alex has been with us about 18 months and has been performing great in everything he does,” Vice President Mike Munter said. “We’ve exposed him to a multitude of tasks from concrete work to framing and exterior envelope systems; all facets of work that we do.”
“All the different crews want to know, is Alex available to work with us,” he said. “He’s got a great work ethic, he’s smart. He really just wants to learn.”
Munter said a general laborer like Rodriguez has ample opportunities to move up the company ladder. “As he learns more he’ll take on more responsibilities, taking on his own specific tasks on site. Then eventually he’ll maybe have someone working with him. He could even be running crews and running projects.”
Munter said his company continues to look for qualified candidates to join the firm.
“If we could find a hundred individual guys and gals like Alex who want to learn and have an interest in these trades would be awesome,” he said.
Rodriguez is just one of the many examples of how the Workforce Coalition is addressing the construction industry’s most basic need, while creating opportunities for area young people. The non-profit organization has grown to 80 partnering members.
“The impact we’ve had is tremendous,” Ford said. “This thing has taken on a life of its own.”
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attend BOCES classes in Hudson Falls would obviously have to travel farther, to Wilton.
But Parker said having all programs in one location, right off the Northway, would reduce travel times by increasing transportation route efficiencies. At present, buses take students from one school district to multiple BOCES sites depending on the program they’re enrolled in.
Some students get picked up at 7:15 a.m. and take long rides before reaching their destination, which would no longer be the case, she said.
The Hudson Falls and Saratoga Springs BOCES centers are on approximately 30 acres each. Plans call for selling both sites, which would require voter approval in a public referendum.
“We have received some preliminary inquiries, but nothing formal,” Parker said.
Glens Falls City School District owns the Sanford Street School building, which BOCES currently leases for elementary special education classes.
Area employers welcome plans for a new center as BOCES graduates quite often fill much-needed jobs that businesses need to remain successful. This is especially true for contractors and construction firms that have been plagued by a severe labor shortage in recent years.
“The demand for our program has only been growing and it’s been growing exponentially,” said Jared Davis, BOCES director of Career and Technical Education. “So we have to be responsive to that. We know that there is a gap in skilled labor in our region. We have the opportunity to expand program offerings and opportunities for students, and put more skilled workers into our regional workforce. That’s
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On an adjacent parcel they’ve constructed four buildings totaling 9,300 square feet containing 72 new drive-up units that range in size from five feet by 10 feet to 10 feet by 20 feet. These units are not temperature controlled.
The company has a division called The Archive, which inventories paper, data tape, and microfiche records and provides courier services in the event information needs to be accessed by the client. There are also destruction services for records that are no longer required.
“Some industries, like the medical profession, have retention periods they need to adhere to, and we keep track of that and advise them when a record is no longer relevant,” Massimiano explained.
Through its other locations Greylock offers a portable self-storage option called Go Mini. They will deliver a 12-foot, 16-foot, or 20-foot unit to a property, which can then be loaded at the client’s pace. According to Massimiano, these units are ideal for homeowners planning a move or contractors that need to empty a building prior to renovations. The unit can then be stored at the client’s property or brought to one of Greylock’s facilities for storage and then redelivered when the job is completed. For homeowners moving to a new location, the company has several trucks that will transport the portable storage unit to their new home or business location. This service covers the Capital District, northeastern New York up to the Canadian border, all of Vermont, and western Massachusetts as far as the Worces-
what a new center and a new building allows us to do so that we bring together what students are seeking and what our industry partners need to keep their businesses operational and our economy growing in this area.”
BOCES recently held a CTE Signing Day ceremony for 65 high school and adult students who are going directly into the workforce after signing letters of intent with dozens of area employers such as Bast Hatfield Construction, Jack Hall Plumbing & Heating and Rozell Industries. Employers gave students tools, T-shirts and hats to show their appreciation and encouragement. Wrap Kingz, a business specializing in automotive wraps, brought a custom-made banner for Gavin Russell, a graphic arts student from Galway who is joining its team.
In recent years, BOCES’ Practical Nursing Program has joined the Signing Day celebration. This year, 18 practical nursing students have secured jobs ahead of graduation including eight who have been hired by The Pines at Glens Falls, marking a new partnership milestone.
Gretchen Steffan, director of the Saratoga Warren Washington Workforce Development
ter County border. Mike Bouleris of MLB Operations, Inc. headed a crew from Queensbury-based O’Connor Construction that did all the excavation, grading, and paving at the site.
“He and his crew have done a lot of great work on this project,” Massimiano said.
Perimeter fencing was installed by Afsco Fence & Deck of Queensbury, and landscaping was done by Sunshine Landscaping of Clifton Park.
The new fence has an automated gate system that allows those renting the new units access through the use of a gate code between 6 a.m. and 10 p.m.
Those renting units in the original section of the Broad Street facility have access from 8 a.m.-5 p.m., six days a week. There is an on-site manager during these hours.
Company-wide, Greylock has approximately 900 customers renting self storage units. Currently, there about 40 in Glens Falls but they hope to increase that number by at least 70.
“We’ve prioritized safety and security of the units so our customers can feel confident in storing their belongings with us,” said Massimiano. “I think as people see the Broad Street location they’ll notice the investment we’ve made and the confidence we have in the Glens Falls market. We’re happy to be neighbors and plan to continue to operate there for some time to come.”
Greylock Storage is located at 79 Broad Street in Glens Falls.
For further information go to greylockstorage. com.
Board was the event’s keynote speaker. She pointed out that CTE is building a pipeline of skilled workers for the regional economy, adding that apprenticeships and internships offer young people an opportunity to learn and grow their skills and abilities.
“You are an important part of the fabric of America,” Steffan said. “America needs skilled trades to keep America going, to keep America strong. Be positive. Be open and enthusiastic about your new role.”
With a comprehensive slate of CTE offerings, from construction trades and auto body repair to cosmetology, criminal justice studies, conservation and forestry, the new Wilton center will equip hundreds of students each year with the real-world skills that area employers desperately need.
“Each time I speak with local employers or alumni, I’m reminded just how vital CTE programs are to our region,” Davis said. “Signing day is our way of recognizing and thanking our students who are stepping in to meet that need and our business partners who support our students and our programs.”
Ambrosia And Capital City Diners Keep Tradition Alive With Full Menu And Family Spirit
BY ROD BACON
Since the 1930s, eateries designed to resemble railroad dining cars that feature shiny chrome interiors have been beacons for people seeking comfort food in small towns and big cities across the country.
Two area establishments built in the style of these classic diners are owned by Bob Pilarinos; the Ambrosia Diner in Queensbury and the Capital City Diner in Albany. Both were fabricated by the DeRaffele Manufacturing Company of New Rochelle, N.Y., which has been designing and erecting diners since 1933.
The family-owned business was launched when Bob’s father, Dennis Pilarinos, opened the Columbia Diner in 1984. He sold that establishment and later opened the Capital City Diner, the Ambrosia Diner in Catskill, the Plaza Diner in Hudson, and finally the Ambrosia Diner in Queensbury. He passed away in February 2024 but the family continues to operate two of his establishments. Bob explained that while the family still owns the other two they are operated by others.
He attributes the success of the enterprise to the fact that diners are convenient and offer a wider menu selection than traditional restaurants.
“You can get anything you want at any time of day” he said. “Parents might want a full dinner while the kids want pancakes, and we can accommodate that. There is also the ‘nostalgia factor’ among older patrons. They love the look and feel of the traditional diners.”
Operating the pair of diners is a true family affair. In addition to Bob, his wife Alaina helps out at the Queensbury site and his sister and her husband, Tina and Saki Tyrnas, run the day-today operation of the Capital City Diner.
Both diners are open seven days a week serving breakfast, lunch and dinner. In addition to traditional diner fare there are vegetarian, vegan, and gluten-free options. Each has an on-site bakery operated by longtime employees. For the past 10 years, Ambrosia Diner’s bakers have provided between 800-1,000 deserts for the Hometown Kitchen’s Thanksgiving dinner.
Approximately 80 staffers, many of whom have been with the company for years, are on the payroll.
In addition to enjoying a meal in the diner, patrons have the option of using a Latham-based online service called Mealeo. Those using the
app in the Albany area can take advantage of home delivery. The company has not brought this service to the North Country yet, but orders can be placed online and picked up at the Ambrosia Diner.
Pilarinos noted that while changes to their menus have been made over the years, they weren’t made in response to competition from traditional chain restaurants.
“The core of our menu has remained pretty much the same over the years,” he said. “Every year we review our offerings and change those that aren’t popular for something else, but overall we’ve remained true to the core of our original menu.”
Supplies for the kitchens come from Clifton Park-based U.S. Foods and Ginsberg’s Foods, which is headquartered in Hudson, N.Y. According to Pilarinos, with the exception of Covid there have never been supply chain issues.
“Ginsberg’s is a family-owned firm that my father started doing business with when he opened his first diner,” he said.
The Ambrosia Diner is located at 518 Aviation Road in Queensbury. Further information can be found at ambrosiadinerqueensbury.com.
The Capital City Diner is at 1709 Western Avenue in Albany. Go to capitalcitydinerny.com for more information.
and the program ensures that only small local facilities benefit.
According to Smith, the company’s goal is to provide 80 percent of a customers energy requirements.
“This will vary,” he noted. “Renewable energy power plants only produce as much power as there is a renewable resource. In our case it’s the river and in high flow months we might produce more power than our customers use, in which case the excess is banked and distributed later. In low flow months it might be less, but on an annual basis we aim for eighty percent.”
Smith emphasized that they make sure that the companies with which they work are responsible and good community stewards.
The roots of Northern Power & Light go back to the 1970s when the Foley and Smith families became involved in Adirondack hydroelectric projects that produced renewable power for the Niagara-Mohawk electric grid. Taking advantage of changes in the electricity market, Emmett Smith and his brother, Ethan, and Louise Gava launched NP&L in 2018.
Their first project was converting Azure Mountain Power, the family’s 750 kW station in St. Regis Falls, to the region’s first community hydro project. They later partnered with Boralex to develop Sissonville Hydro on the Racquette River in the village of Potsdam and the Schroon River Paper Mill Dam in Warrensburg into community hydroelectric sites.
“Something I feel really good about is that we’re reintroducing the region to hydro power and reintroducing hydro companies to the region,” he said.
For more information about how to enroll in this project and how Northern Power & Light is developing hydroelectric facilities go to npandl. com.
offer before or after their boat outings!”
Members of Freedom Boat Club Lake George will also have reciprocal access on the Great Sacandaga Lake this summer.
Adam and Jessica Retersdorf, of Reet’s Marina, will launch Freedom Boat Club of Great Sacandaga Lake with eight boats in their Freedom fleet to supplement their existing dealership, service, and boat rental business.
Commented owner Rebecca O’Hara, “Expanding to a second location that we
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know members will love has been a goal of ours for years and we are so thankful to have found a partner in Water’s Edge. With more local locations, and over 420 boating destinations around the world, Freedom Boat Club offers unrivaled access to on-thewater experiences! The summer of 2025 is shaping up to be our best yet!” Improvements at Water’s Edge also include reopening the former deli space, which is being reimagined and is scheduled to open this summer under new ownership.
Ambrosia Diner in Queensbury keeps classic diner charm alive with comfort food and chrome.
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more reasonable valued equity investments and alternative bond markets. International equity markets have performed well year-to-date. Other bond markets have performed well, too. However, the U.S. equity markets remain home to the most innovative companies in the world. The valuation of the S&P 500 has declined, with the Price/Earnings ratio declining from 23 times earnings to a more reasonable and closer to the historically average P/E of 18 The difficult correction has wrenched most of the overvaluation out of the U.S. markets. The U.S. financial markets will remain the largest, best-regulated, and most liquid in the world. They will remain exceptional!
On Monday, Moody’s became the last of the major bond rating agencies to downgrade the last U.S. Treasury bond rating from AAA to AA. S&P downgraded in 2011. Fitch downgraded in 2023. What took them so long? Every politician, Wall Street strategist, and even Fed Chair Powell routinely state that the current debt level is “unsustainable.” Moody’s has finally gotten around to a downgrade, citing chronic budget deficits and rising interest rates. For long-time readers of this blog, they know this has been a frequent rant of mine. The catalyst of the downgrade seems to be the ongoing budget discussions in Washington. Admittedly, I also have been disappointed in the budget discussions. The focus seems to be on the extension of the 2017 Tax program and its impact on the deficit. The program’s extension would keep tax levels roughly the same, yet government accounting means that it would increase the deficit by roughly $4 trillion. Thus, the newfound concern for budget deficits. Apparently, the blowout spending of the first Trump and Biden administrations wasn’t a concern? Alternatively, failure to extend the tax program would result in a $4 trillion tax increase on an economy facing tariff uncertainty. Damned if you do, damned if you don’t. Either way, the current budget bill does not seem to be making much progress on healing the fiscal status of the U.S. government. But as previously discussed, Washington has a spending problem. Revenue as
a % of GDP has averaged 18% over numerous tax policy regimens. Today, revenue is near record levels and hovers near the historic 18%. On the other hand, spending continues to grow, driven mainly by entitlement spending and interest rate expense. It is currently nearly 24% of GDP, unprecedented for a non-recessionary or nonwar economy. The deficit was 6.4% of GDP last year and is projected to exceed $2 trillion this year. Houston, we have a spending problem! Unfortunately, neither party has demonstrated any interest in reducing spending. Witness the current debate over Medicaid spending. A proposal to require work requirements for able-bodied individuals or to charge them $100/month is met with outrage. This is “gutting” Medicaid! This morning, President Trump suggested that the entitlements are off-limits. Unfortunately, that is where the growth in spending is, and it is the largest line item in the Federal budget. This is fiscal irresponsibility. While Moody’s is late to the game, the Washington’s downgrade is well deserved. So, does the downgrade of U.S. debt mark the end of exceptionalism? The answer is yes, or mostly yes! But what does that mean? The reality is that there is a small list of AAA-rated countries. However, these countries’ bond markets have very small market capitalizations. Is it possible, on the margin, to find safety in Switzerland? Sure, their bond market is roughly $1 billion. Hardly suitable for the size of investments that sovereign nations and large institutional investors require. So, despite the downgrade, the U.S. Treasury bond market will remain the largest and most liquid in the world. Great! But it implies that, on the margin, U.S. interest rates will be higher. That is not a good thing for a U.S. economy that is already facing some challenges. At a minimum, it is a dent in American Exceptionalism.
Will American Exceptionalism remain? For the most part. Despite global military conflicts, trade war uncertainty, and fiscal challenges, the U.S. economy will remain exceptional in the long term. Our economy will remain the largest and richest consumer market in the world. It will remain the home to the world’s greatest companies. And our financial markets will remain the largest, best-regulated, and most liquid in the world. I would call that exceptional!
