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Chemung Financial appoints Tully to board of directors
ELMIRA, N.Y. — Chemung Financial Corp. (NASDAQ: CHMG) announced that it has appointed Kevin B. Tully, of Saratoga Springs, to the boards of directors of

Shareholders vote to approve KeyCorp acquisition of First Niagara Financial Group
Shareholders of both companies on Wednesday voted to approve KeyCorp’s (NYSE: KEY) acquisition of First Niagara Financial Group (NASDAQ: FNFG). They approved the acquisition during
New York milk production rises 8 percent in February
New York dairy farms produced 1.14 billion pounds of milk in February, up 8.3 percent from the year-ago period, the USDA’s New York field office

Rome Memorial Hospital affiliates with St. Joseph’s Health
ROME, N.Y. — Rome Memorial Hospital (RMH) has announced an affiliation agreement with St. Joseph’s Health of Syracuse that RMH hopes will “expand access to

Galaxy Communications combining WSEN with Sunny 102
SYRACUSE, N.Y. — Radio station WSEN 92.1 FM is combining with Galaxy Communications’ Sunny 102 (WZUN 102.1 FM) to create what Galaxy CEO Edward Levine

Iannuzzo’s Karate & Kickboxing Fitness grows revenue, strikes plans for further growth
CLAY— Iannuzzo’s Karate & Kickboxing Fitness studio generated 18 percent revenue growth in 2015 and forecasts another double-digit increase this year, says Rick Iannuzzo, owner of the martial-arts school located near Moyers Corners in Clay. Even after 44 years of martial-arts-training under his belt, Iannuzzo is still restless and searching for new ways to transform
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CLAY— Iannuzzo’s Karate & Kickboxing Fitness studio generated 18 percent revenue growth in 2015 and forecasts another double-digit increase this year, says Rick Iannuzzo, owner of the martial-arts school located near Moyers Corners in Clay.
Even after 44 years of martial-arts-training under his belt, Iannuzzo is still restless and searching for new ways to transform his 26-year-old business, which produced revenue growth last year without raising its prices.
“I’m not one who likes to be complacent about things, we’re always developing, tweaking, changing our program,” Iannuzzo says.
The business has more than 400 clients, 60 percent of whom are martial artists under the age of 15. Iannuzzo says he’s seeing a trend toward younger and younger children — even those as young as age 2 or 3 — getting involved.
“Parents are looking for activities even younger now,” Iannuzzo says. “We’re a necessity for parents nowadays … the majority of both parents are working and they really need someone to help them fill the gap.”
Iannuzzo has started to offer more family-oriented courses where parents can train with their children for the first six months at the school. After that, the kids train with people of their same size and age, which is critical for self-defense and sparring classes.
Possible future expansion
To meet the demand and avoid over-crowded courses, Iannuzzo has added more courses to the evening schedule, running multiple classrooms at the same time. He is also beginning to consider the idea of an additional location for another studio.
“The challenge in our industry is that we could always use 3,000 more feet for three hours a night,” Iannuzzo says.
Iannuzzo’s Karate & Kickboxing Fitness is currently situated in an 8,000-square-foot building on 2.22 acres of land at 8553 Oswego Road. The property’s full market value was listed at $459,397 for 2015, according to Onondaga County property tax records. The combined county and school tax bill for the current fiscal year is nearly $16,000.
Opening a new location would also give Iannuzzo’s most dedicated employees a possible business partnership.
“I have so many students that have been with me for so many years; one of my full-time instructors has been with me for 24 years,” Iannuzzo says. “There’s a need for an opportunity for people to grow. It’s really more to create more jobs for instructors that want advancement.”
Bob DeSimone, floor supervisor and instructor for 24 years at Iannuzzo’s school, would be one of Iannuzzo’s prospective partners in a new location, he says. He says he has no set timeline for the possible expansion.
Over time Iannuzzo’s Karate & Kickboxing Fitness has seen an increase in competition but it hasn’t hurt its revenue numbers. “Back in the 90s there were only two karate schools within 10 miles, now there’s seven,” Iannuzzo says. “My numbers have stayed the same or increased.”
He attributes the steadiness — regardless of competition — to parents looking for a way to teach their children core values like discipline, control, and respect. Karate is also recommended as a treatment alternative for people who have attention deficit disorder (ADD) and attention deficit hyperactivity disorder (ADHD), and more children are diagnosed every year. “The percentage of children with an ADHD diagnosis continues to increase, from 7.8 percent in 2003 to 9.5 percent in 2007 and to 11 percent in 2011,” the Center for Disease Control and Prevention reports.
Another fast-growing trend in the industry is the popularity of mixed martial-arts (MMA) fighting, led by Ultimate Fighting Championship (UFC) stars like Ronda Rousey and Nate Diaz. However, Iannuzzo doesn’t teach this more aggressive, violent style of fighting at his club.
“Our base is more children and I think children should learn control before they learn how to be out of control,” Iannuzzo says. “We’re careful what we teach kids as far as self-defense goes. We don’t want them to go out and ground-and-pound on someone or choke someone unconscious.”
Instead, Iannuzzo focuses on blending several styles of martial arts to improve self-defense. His school offers the styles of taekwondo, judo, aikido, Muay Thai, and jiu-jitsu — to name a few.
Online training
Iannuzzo also previously diversified his business by launching an online-training program, called internationalkarateschool.com. However, after encountering negative comments about the school on social media, he took the website down, he says.
“There were all of these people writing this negative stuff about it because they were saying, ‘oh this guy is looking for money’ but it really did fill a void,” Iannuzzo says. “This was to fill a void for people who maybe don’t live near a school or were a former student and wanted to continue to train.”
Iannuzzo first started the online school after getting multiple requests from his former students who had moved away and had no adequate karate schools nearby.
“I thought it was a great thing, but there were a lot of people who were very negative about it,” Iannuzzo says. “So I said, you know what, if people are just going to write negative things like that, I’m just going to take it down. So it really bugged me.”
Iannuzzo still sends personal training videos to his students who request them, and is planning to relaunch the online school in the next year.
“I think I’m going to put it back up there because I know a little more about social media and think I can combat against those people a little more,” Iannuzzo says.
Originally the online program cost $39 a month while in-person classes run for $139 a month. The online price may change while in-person classes will see a $5 rate increase next month, Iannuzzo says. He adds that he hasn’t increased rates in a while, and needs to do so for employee raises.
The school has consistently employed 10 instructors since opening in 1990. All of Iannuzzo’s kickboxing instructors have worked with him for at least 15 years while his son, Nikko, works full time as an instructor. His other son, Dalton, a student at Syracuse University, works during school breaks and helps with bookkeeping.
Iannuzzo’s wife, Julia, is a personal trainer and nutritionist who has been with the business since opening day.
Julia and Rick Iannuzzo met on a blind date on Sept. 28, 1989. Four months later they were engaged, and then married on July 28, 1990. That same year they opened Iannuzzo’s Karate & Kickboxing Fitness studio and two years later had their first son, Nikko.
“It was a busy few years for sure,” Rick Iannuzzo says.
Looking back on the first year with his wife, he says she was not the muscular nutritionist and personal trainer she is today. “When I met her, she wasn’t really working out,” Iannuzzo says. “Two weeks after we met, she got up at 5 o’clock in the morning and would go to the gym with me.”
Julia Iannuzzo also pushed Rick toward his goals. “She was the one who really recommended that I do my own thing,” he says. He attributes much of his initial drive to open his own studio to the support of his wife. Now, 26 years later, their business and marriage are thriving more than ever, Iannuzzo says.

GAËL Brewing hops into New York state’s farm brewing scene
GENEVA — After leaving a 25-year career behind, George Adams traded in his life savings, his retirement fund, and a bank loan in pursuit of his dream — opening up and running a brewery. “It was the dream, and layoffs woke me up a little bit — the chances of me being an engineer until
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GENEVA — After leaving a 25-year career behind, George Adams traded in his life savings, his retirement fund, and a bank loan in pursuit of his dream — opening up and running a brewery.
“It was the dream, and layoffs woke me up a little bit — the chances of me being an engineer until retirement were dwindling,” Adams says. “It was either do it now or not have a chance to do it in this life.”
Adams’ dream materialized when he opened GAËL Brewing Company in June 2015. The microbrewery operates from a 2,500-square-foot facility on Rt. 14 near Seneca Lake in the town of Geneva. The front one-third of the facility serves as a tasting room, while the back two-thirds is designated for production space.
Adams, 49, left his job at Alstom, a multi-national rail transportation company, in January 2014 to pursue his part-time hobby — brewing — on a full-time scale. He and his wife, Beth Lauzon, took on the task of running the business together, though Adams is the sole owner.
At any given time, GAËL Brewing usually has seven beers on tap, and each pint sells for $5. The most popular, Adams says, are Rye Bread Ale and Templederry Irish Stout — known for their classic and authentic Irish flavors. Depending on his mood, Adams says his favorites can be the Sherlock Blonde Ale or Liam’s Irish Red Ale, characterized by their sweet, smooth tastes.
To maintain its microbrewery status, a brewery is limited to producing 60,000 barrels a year or less. GAËL won’t cross this threshold anytime soon — Adams says he brews anywhere from 90-120 barrels each year. The whole process — from milling the grains to fermenting to kegging and beyond — takes about a month, and Adams can only produce about 250 gallons at a time.
While the microbrewery gets its grains primarily from farmers in the Midwest, one of its hops suppliers is located less than 10 miles away.
Area hops farm
Pedersen Farms, a 1,500-acre, family-owned farm in Seneca Castle, grows more than 15 different varieties of hops. Rick Pedersen founded the farm with his wife,
Laura, on just a few acres in 1983. The duo established the first farm east of the Rockies to start farming hops in 1999, Pedersen contends.
“The first couple of years, it was like no one understood what a New York hop was,” he says. “I gave out a lot of free samples for a while.”
After about a decade of coming to understand each hop variety’s prime harvesting schedule — and of giving out free samples — Ithaca Beer Company became the farm’s first customer.
The New York State Farm Brewery Law, which provides tax incentives for both brewers and farmers involved in the production of alcoholic beverages, also helped drive up business between New York growers and brewers, Pedersen says.
Pedersen Farms now sells to more than 25 different breweries in New York and along the east coast, including GAËL.
Pedersen’s hops are of the aroma variety, specifically, and not considered bittering hops. Hops act as a natural preservative in beer, and each kind offers a different taste when used in the brewing process. Cascade, Centennial, and Nugget are three of Pedersen’s most sought-after varieties, he says.
In terms of gross income, hops bring in about the same revenue as any of his other crops, Pedersen says. It’s the work that goes into growing them that he loves.
“It’s a fun crop — it gets in your blood,” he quips. “It’s just, you learn how to do it and there’s a passion and a romance to it.”
The perennial plants are a time-sensitive crop, Pedersen explains. Once they’re harvested, hops have to be used by the brewer in much less than 24 hours to preserve their quality.
They’re also a rare commodity on the East Coast — all of Pedersen’s hops were spoken for as of last September. Brewers have to buy in advance and schedule a pickup or delivery weeks ahead of time, Pedersen says.
Being a new brewer, Adams reached out to Pedersen well before GAËL actually opened up. Since then, GAËL has ordered two shipments of hops from Pedersen Farms and begun to expand its reach beyond the Finger Lakes.
Aside from attracting customers following the Seneca Lake Wine Trail, GAËL distributes its craft beer to area restaurants and bars like Kitty Hoynes at 301 W. Fayette St. in Syracuse and stores such as AJ’s Beer Warehouse at 175 Clay Road in Rochester.
The winter season is slower for business, Adams says, but he’s looking to pick up speed this summer and take advantage of being the “odd ball” on the wine trail.
“We’re on a fairly popular trail, and the town has been more than hospitable to us,” Adams says. “This place is predictably unpredictable.”
Ruscitto to retire as St. Joseph’s Health CEO at year-end
SYRACUSE — Kathryn Ruscitto says she is “almost at the end of all the goals that I set for myself” since joining St. Joseph’s Hospital Health Center in 2001. Ruscitto, the health-care organization’s president & CEO since 2011, has announced her decision to retire at the end of 2016, following six years at the helm.
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SYRACUSE — Kathryn Ruscitto says she is “almost at the end of all the goals that I set for myself” since joining St. Joseph’s Hospital Health Center in 2001.
Ruscitto, the health-care organization’s president & CEO since 2011, has announced her decision to retire at the end of 2016, following six years at the helm.
“I feel the organization has preserved its mission in joining Trinity [Health], has really begun to develop the right framework for the future and responding to health-care reform, and is able to engage the community in a way that is going to help us respond to community needs,” says Ruscitto.
She spoke with CNYBJ on March 11, the same day that the hospital announced her upcoming retirement.
Ruscitto is St. Joseph’s Hospital Health Center’s 13th president and CEO. She replaced Theodore Pasinski on Jan. 1, 2011.
In her time at St. Joseph’s, Ruscitto helped to lead the facility through a multi-year, multi-phase capital project that included a new emergency department; a new 73,000-square-foot surgical suite; and the new Christina M. Nappi Surgical Tower, which the hospital formally opened in September 2014.
Ruscitto also guided the organization through the installation and May 2014 launch of SJLinked, an electronic health-record (EHR) system across the entire organization, including the hospital, clinics, and the primary-care offices of St. Joseph’s Physicians.
Besides the capital project and EHR project, St. Joseph’s Health in July 2015 formally joined Livonia, Michigan–based Trinity Health, which describes itself as “one of the largest multi-institutional, Catholic health-care delivery systems in the nation.”
St. Joseph’s Health, which is the new name for St. Joseph’s Hospital and its affiliates, transferred the nonprofit sponsorship from the Sisters of St. Francis of the Neumann Communities to Trinity Health’s Catholic Health Ministries.
Finances
When asked if she expected St. Joseph’s to improve its financial position in her remaining months as CEO, Ruscitto replied, “That’s already happening.”
St. Joseph’s has reported operating losses in 2014 and in part of 2015, which Ruscitto says the hospital expected when it “made the commitment to continue down the road of community access to care.”
She also points to the $20 million grant the New York State Health Department awarded St. Joseph, which she contends “was in direct recognition” of “putting in place the right services to improve the health of the community.”
St. Joseph’s is using the $20 million award for “debt restructuring and program reinvestment,” according to a March 4 news release from area state lawmakers.
That funding came from the essential health-care provider support program (EHCPSP).
The St. Joseph’s EHCPSP grant is the “largest grant that St. Joseph’s has ever received,” the organization said in a news release.
“The funding has lagged the investment we made,” she says.
Ruscitto defends St. Joseph’s involvement in Primary Care Center – West clinic, which she says provides the neighborhood primary care, pediatric care, care for pregnant women, and mental health treatment.
Primary Care Center – West at 321 Gifford St. in Syracuse was previously known as Westside Family Health Center, according to the St. Joseph’s website.
“We certainly expect to get back to where we were prior to some of those investments with the state support,” she says.
She also notes the Trinity Health sponsorship is helping to reduce overhead costs.
Looking back
When asked what she’s most proud of during her time as CEO, Ruscitto pointed to the hospital’s efforts to “change the way in which it engages the community.”
“The organization got behind the West Side and building the West Side Family Health Center. We have a primary-care practice out in Cazenovia that serves the rural community. We’re helping the Lewis County hospital up in the North Country. We’ve really done a number of things that we have developed really into a system of care,” she adds.
As for what she would’ve done differently, Ruscitto said she would’ve started developing more formal leadership training earlier, even in the decade before she became CEO.
Ruscitto joined St. Joseph’s in 2001 as senior VP for development and governmental affairs. The hospital named her executive VP in 2009.
In the years before joining St. Joseph’s, Ruscitto served as administrator for human services for Onondaga County in 1988 and oversaw the development of the emergency communications center on Onondaga Hill.
St. Joseph’s will soon begin a national search for a new president, the hospital said.
The hospital’s local board of trustees and representatives from St. Joseph’s constituent groups, including physicians and nurses, will help lead the search.
Ruscitto will work with the board of trustees and the Trinity leadership team as they search for the next CEO.
“Our board will still very much be in control of that process in choosing the next leader and I’ll be able to focus more of the rest of this year on the last few things that I want to make sure get completed,” says Ruscitto.
She has also offered to remain in her position until a new leader is in place, the hospital said.
New York manufacturing index turns positive after seven months in decline
Numbers indicating increases in orders and shipments helped generate a positive reading on a key monthly gauge of the New York manufacturing sector for the first time since last summer. The Empire State Manufacturing Survey general business-conditions index rose 17 points to 0.6 in March, its first positive reading since July of last year. That
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Numbers indicating increases in orders and shipments helped generate a positive reading on a key monthly gauge of the New York manufacturing sector for the first time since last summer.
The Empire State Manufacturing Survey general business-conditions index rose 17 points to 0.6 in March, its first positive reading since July of last year.
That beat economists’ average estimate of a reading of -10.5, according to Bloomberg. And, a MarketWatch.com poll of economists had forecast a -10 index number.
The results of the Empire State survey indicate that business activity “steadied” for New York manufacturers in March, the Federal Reserve Bank of New York said in its news release issued March 15.
A positive reading on the index indicates expansion or growth in the sector, while a negative reading points to a decline in manufacturing activity.
The survey found 25 percent of respondents reported that conditions had improved over the month, while roughly the same percentage said that conditions had worsened.
Inside the survey
The new-orders index posted a “steep gain” of 21 points, rising to 9.6, a positive reading that marked the first time orders had increased in several months, according to the New York Fed.
The shipments index “shot up” 25 points to 13.9, signaling an increase in shipments, and the unfilled-orders index edged up three points to -4.0.
The delivery-time index inched down to -4.0. The inventories index fell to -6.9, suggesting a decline in inventory levels.
The prices-paid index held steady at 3.0, indicating a “slight increase” in input prices. At -6.0, the prices-received index pointed to a small decline in selling prices.
The index for number of employees edged down to -2.0, indicating that employment levels remained “fairly steady,” and the average-workweek index rose to 2.0, a sign that the average workweek was also “little changed.”
Indexes for the six-month outlook indicated that conditions are expected to improve in the months ahead.
The index for future business conditions climbed 11 points to 25.5.
The index for future new orders advanced 17 points to 38.9, its highest level in more than a year, and the index for future shipments rose 10 points to 33.3.
The capital-expenditures index moved up 3 points to 15.8, and the technology-spending index rose to 9.9.
The New York Fed distributes the Empire State Manufacturing Surveyon the first day of each month to the same pool of about 200 manufacturing executives in New York. On average, about 100 executives return responses.
Business Tax Cuts Help Everyone
If you remember the movie “Animal House,” you remember Bluto — John Belushi’s character. In one scene, he exhorts his glum fraternity pals. He gives an emotional and rousing pep talk — ordering them to follow him. He flings his fist in the air, rends the air with a banshee rallying cry, and charges out
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If you remember the movie “Animal House,” you remember Bluto — John Belushi’s character. In one scene, he exhorts his glum fraternity pals.
He gives an emotional and rousing pep talk — ordering them to follow him. He flings his fist in the air, rends the air with a banshee rallying cry, and charges out of the room.
Yet, nobody stirs.
Okay, here is a rallying cry: Let’s cut taxes on big business. Let’s cut taxes on small business. Slash them big time. Hurrahs all around. All in favor raise your … I said all in favor … Wait a minute. Hello, hello. Is anybody awake out there?
Nobody is much interested. Well, a few business people are interested, as are some diehard free marketers. All those filthy capitalists, they like the idea. But the good ole suffering folks in the middle class? Nah.
Here is why they don’t like the idea of cutting business taxes. And here is why they should love it.
They don’t like it because median family income in the U.S. is the same as it was in 2000. The average family has seen no gains. The average worker and family are treading water. They figure they are not gaining, so why give a break to business?
You can fling buckets of figures at them. They don’t care. Look at this trend line. Look how savage the recession was. Blah, blah, blah. Their answer is: We are treading water; we’re the ones who need the tax cut.
Here is why middle-class workers should love the idea of a tax cut for business. It is a tax cut for them and a chance for a raise. How can this be? It is because companies don’t pay taxes. Employees and customers pay them. They pay the taxes levied on businesses.
How do they pay them? Companies simply pass tax costs on in several ways: by holding a lid on salaries, trimming benefits, hiring fewer people, or by laying off more. Or the businesses raise prices or cut services.
It truly is as simple as that. Imagine a grocery store in your town. Tonight, the city council levies a 10 percent tax on all the profits for the store. That store will stay open all night, so that workers can raise the prices on every item before morning.
So theoretically, the store pays the tax. But in reality, you the customer pay it. And you the employee pay it, when the store cuts your hours. It trims your hours because the higher prices slow down sales.
You probably know Larry Kudlow from TV or radio. Or, you read his columns. When it comes to our economy, Kudlow is as clear-headed as you will find. He says our middle class has suffered because our economy grows too slowly.
Since 2000, the economy has averaged 2 percent growth per year. That’s not nearly enough. From 1950 to 2000, the economy averaged 3.5 percent growth. If the economy had grown at 3.5 percent annually over the last 14 years, the average household income would have soared — instead of soured.
To Kudlow, the solution is simple: Cut corporate taxes to 15 percent. For large and small businesses. Let companies deduct right away every penny they invest for growth. (They currently have to spread the deduction over many years.) And let’s cut taxes on the profits that companies stash overseas. — to make it easy for them to bring the money back to the U.S.
Kudlow argues that this will stimulate the economy more than anything else. I believe he is right — because it is a middle-class tax cut, as I discussed above.
The economy needs to grow more rapidly to help the middle class. Folks in the middle class need such a tax cut for business — whether or not they realize it directly helps them.
When companies pay taxes, it is we who pay them — through higher prices and lower pay and benefits. When companies get tax cuts it is we who get them — through lower prices and more pay and benefits. And through companies expanding.
The time is ripe for tax cuts for business. Because those cuts are for us.
From Tom…as in Morgan.
Tom Morgan writes about political, financial and other subjects from his home near Oneonta. Several upstate radio stations carry his daily commentary, Tom Morgan’s Money Talk. Contact him at tomasinmorgan@yahoo.com
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