How big are the fiscal challenges faced by New York State in second half of its 2019 fiscal year? Are tax receipts and spending living up with projections? What's the outlook for the next few years?
We don't know—because, for an eighth consecutive year, Governor Andrew Cuomo has missed the statutory deadline for producing a Mid-Year Financial Plan Update.
The upstate economy continues to stagnate, with consequent financial and social problems. The downstate economy continues to boom, with different problems and its own warning signs. No surprise. This latest evidence of New York's economic reality comes from the Empire Center and its estimable grey eminence E.J. McMahon. It's a well-crafted analysis and consistent with dozens of other such reports.
To those who don’t get north of the city’s suburbs, Cuomo’s talk of an “even” economic recovery across the state may sound fine. But a new report from the Empire Center’s E.J. McMahon highlights the ugly facts.
It’s a tale of two states — upstate and downstate.
Upstate New York’s economy has added just 6.3 percent more jobs since 2010, among the worst performances in the nation, according to a study released Tuesday.
There has been a sharp and growing economic divide between upstate and downstate.
Reforms that would reduce the state’s cost burdens and improve its climate for growth.
Gov. Andrew Cuomo began 2018 the way he ended 2017: demonizing Washington Republicans and fulminating against the newly enacted federal tax reform, especially its $10,000 cap on state and local tax (SALT) deductions. Two weeks after his State of the State message, Cuomo devoted a portion of his fiscal 2019 budget presentation to the same subject, pledging again to come up with a plan to restructure the code by shifting from an employee-paid to an employer-paid income-tax system.
E.J. McMahon, research director at the Empire Center for Public Policy, a conservative-leaning think tank, stated that the tax conformity issues raised by the federal law would be the primary focus of New York tax policy in most years. However, the state and local tax deduction (SALT deduction) issue, and the related proposals to shift the state’s reliance away from the personal income tax, has drawn the lion’s share of attention.