

New York’s state revenues are disproportionately generated in New York City and its suburbs, resulting in a net transfer of income to upstate, according to a report issued today by the Nelson A. Rockefeller Institute of Government. Meanwhile, a study by the Independent Budget Office (IBO) shows that “tax effort” is also highest downstate, especially in the city.
Both reports were released and discussed this morning at a conference in Manhattan co-sponsored by the the Rockefeller Institute, IBO and the Citizens Budget Commission.
The estimate of total revenues generated by each region differs depending on whether revenue is traced to residents of the regions, or to people working within the regions, including the commuters who generated much of the state taxes coming out of New York City. Based on numbers in the first two tables of the Rockefeller Institute report, I came up with this way of illustrating the findings:
New York City comes closest to breaking even on the flow of funds. Not surprising, the Capital Region gains the most from the flow of funds, followed by the rest of upstate New York. Residents of downstate suburbs are effectively providing a very large net subsidy to upstate.
About the Author
E.J. McMahon
Edmund J. McMahon is Empire Center's founder and a senior fellow.
You may also like

New York’s pricey hospitals draw pushback from labor

On College Readiness, Comptroller Asks Wrong Question, Delivers Flawed Answer

A Look at Covid Learning Loss in NYC

Judge, Jury and … CFO?

NY’s jobs recovery now strongest downstate

In Albany This Week, First Do No Harm

NYC’s out-migration fueled NY state’s record population drop in 2020-21

New York’s Hospital Industry Ranks Near the Bottom of Two Quality Report Cards
New York’s pricey hospitals draw pushback from labor
- February 22, 2023
A Look at Covid Learning Loss in NYC
- September 29, 2022
Judge, Jury and … CFO?
- August 4, 2022
NY’s jobs recovery now strongest downstate
- July 21, 2022
In Albany This Week, First Do No Harm
- June 1, 2022