He said a lack of planning is to blame for the poor position the state is in.
Domenici is a service disabled veteran who founded Strategic Response Initiatives, LLC, a Homeland Security and Department of Defense based company in the Watervliet Arsenal.
Domenici served 22 years in the Army as a Lieutenant Colonel and was on the receiving end of the Legion of Merit and The New York State Conspicuous Service Cross, as well as other decorations.
Domenici resides in South Colonie with his wife Virginia and has three children.
"As a small business owner, I understand the importance that small businesses play in our community," said Domenici. "Small businesses are the backbone of every community. Without small businesses there are no jobs. Where there are no jobs there is fiscal disaster. It is so hard to survive as a small business up here."
He said he was ready to retire when the Republican committee approached him to run, and now his campaign is starting out in full swing.
"I've been running flat out non-stop," Domenici.
Domenici is going to focus on non-partisanship, and he said he has already pulled in a number of contributions from Democrats and Republican's alike.
Domenici said he is less interested in political parties and more concerned with the "economic survival of the state and our children's future."
"There's a lot anger out there," he said. "We're going to make this a neutral platform."
Domenici's son, who is serving in Afghanistan, helped Domenici decide to run, he said. He said his son was contemplating another tour or coming home to New York, but said he may stay overseas with the lack of work in the states.
Domenici plans on drawing on all his experiences as a military leader, school board member and small business owner if elected.
He has two master's degrees, one from Marist College in public administration and one from the U.S. Army War College in International Strategic Studies.
Sen. Neil Breslin, D-Delmar, holds the 46th Senate seat.