By Jimmy Vielkind 

BOLTON LANDING, N.Y. -- After endorsing Gov. Andrew Cuomo twice in the last eight years, the state's business leaders are considering whether to offer their blessing for a third term after the governor tacked left to win a Democratic primary.

Mr. Cuomo and his allies are hoping the business community will focus on the moderate fiscal policies of his first term. They include capping increases to local property tax levies, reducing pension benefits for new public employees, reining in state spending growth and cutting corporate and income taxes.

Other leaders are more sensitive to recent legislation -- including a minimum-wage hike and a paid family leave program that Mr. Cuomo pushed in 2016 -- and pending regulations that would require managers to give advance notice of changes to employee schedules. They've noticed a shift in Mr. Cuomo's focus and his embrace of labor unions in his second term.

"It's a tale of two terms," said Greg Biryla, New York state director of the National Federation of Independent Business.

Mr. Cuomo is set to address on Tuesday members of the Business Council of New York State, which represents large employers, at its annual retreat in Bolton Landing on Lake George.

In interviews, business leaders said they felt Mr. Cuomo had governed as a fiscal centrist and has been responsive to their needs. Business Council President Heather Briccetti said that the final minimum wage legislation contained a slower phase-in for businesses outside of New York City. She also pointed to changes in workers' compensation requirements, enacted in 2017, that resulted in savings for employers of around 10%.

Ms. Briccetti said the Business Council's endorsement committee will make a decision in the coming weeks.

Mr. Cuomo worked closely with labor groups on the minimum-wage hike and on legislation that made it harder for public employees to opt out of unions; the New York State AFL-CIO endorsed the governor after declining to issue an endorsement in 2014. His administration has actively courted business leaders and created a system of regional economic development councils that allowed them to weigh in on state tax credits and infrastructure grants.

G. Thomas Tranter Jr., president of Corning Enterprises, sits on the Southern Tier council and said the governor's investments have been important. His company, which produces specialty glass and ceramic products, has received state money for two expansion projects, and has increased its head count from about 5,000 to 6,000 employees over Mr. Cuomo's term.

"I'm personally going to support him, and I'm a Republican," Mr. Tranter said.

Dutchess County Executive Marc Molinaro, the Republican gubernatorial nominee, on Monday told business leaders that Mr. Cuomo had invested in "shiny objects" without tackling the state's underlying business climate. In 2018, the tax-policy nonprofit Tax Foundation ranked New York's business tax climate 49th in the nation.

"These aren't our priorities," Mr. Molinaro said. "These are the priorities and mind-set of a governor who's made New York, and allowed it to become, the most corrupted and high-tax state in America."

Mr. Molinaro said if elected he would cut property taxes -- which are set by municipalities and school districts, not the state -- by 30% over five years. He said his campaign would unveil details of the plan this week, but that it would include the repeal of state mandates and have the state assume around $5 billion of Medicaid costs that are currently borne by counties.

An aide to the governor said his speech to the Business Council will tout lower tax rates, the record number of private-sector jobs and infrastructure upgrades he hopes will continue in a third term. Abbey Fashouer, a spokeswoman for the Cuomo campaign, said Mr. Molinaro's proposal was "light on details" and would "slash spending" for local services.

Write to Jimmy Vielkind at Jimmy.Vielkind@wsj.com

(END) Dow Jones Newswires

September 24, 2018 18:37 ET (22:37 GMT)