The Facts

The Consequences of Albany’s Policies

1)    Hijacked our representative democracy,

2)    Implemented policies that significantly decreased Upstate New York’s per capita income  relative to the rest of the country,

3)    Implemented policies that raised workers’ compensation, health insurance, and energy costs to such an extent that hundreds of thousands of good paying jobs fled New York State,

4)    Failed to adequately fund inner city schools and placed millions of youth in jeopardy,

5)    Raised civil service pensions and Medicaid benefits to unsustainable levels, forcing unaffordable property and sales tax increases,

6)    Not delivered an on-time budget,

7)    Promoted state-sponsored gambling to cover budget shortfalls resulting from the      leadership’s irresponsible policies, and

8)      Implemented policies that cause our youth and capital to flee New York State.

Recent NYS Rankings

Center for Democracy

            Least Democratic of all 50 States

NY University’s Brennan Center

            Highest Cost most Dysfunctional State Government of all 50 States.

Pacific Research Institute

            Least Economically Free State

Largest Per-Capita Government of all 50 States

            Highest Per-Capita Welfare Spending of all 50 States                                          

            42^nd Greatest Regulatory Burdens

Tax Foundation

Highest State & Local Taxes of all 50 States

In 1990, New York State After-Tax Incomes were 114% of the national average, while in 2002 they had fallen to 109% of the national average.

In 1990, Upstate New York After-Tax Incomes were 90% of the national average, while in 2002 they had fallen to 84% of the national average.

An Upstate New York family earning $80,000 has $8,800 less to spend each year than a comparable family in most other states.  Over a forty year career, this money saved, invested, and earning 5% amounts to over a million dollars.

From 1983-2002, the US added 37% more high skilled manufacturing jobs, while New York State lost 14% of the ones it had.

In 1950 NYS had 43 US Representative and in 2005 29.  That’s a 33% decline.

On January 5^th, 2005 The Wall Street Journal Editorial Board had a lead editorial describing the economic woes of The Former Empire State.

CEO Watch magazine designates NYS  and as one of the two worst states to do business in the country. 

State After-Tax Income Index 1990-2002

Upstate NY’s Performance from 1990-2000

Relative to the Total United States

Upstate NY’s Performance from 1983-2002

Relative to the Total United States

Data Sources include: www.infoplease.com, www.taxfoundation.org, and www.brookings.edu.

Higher Costs Associated with NYS

Workers’ Compensation

            80% more than the US median.                                      $11,793  vs.  $6,552

Health Insurance

            10% more than the US average.                                    $  8,277  vs.  $7,509

Electricity

            43% more than the US average.                        11.4 ¢ / Kwh  vs.  8.0 ¢ / Kwh

Natural Gas

            37% more than the US average.                    $8.51 / cu. ft.  vs. $6.23 / cu. ft.

State & Local Taxes Per-Capita

   48% more than the US average.                                      $4,645  vs.  $3,149

Data is from The New York State Business Council.

2003 Top 10 Lobbying Spenders

1199/SEIU & GNYHA Healthcare Education Project                  $11,067,696

United Teachers (NYS)                                                      $  2,292,528

Seneca Nation Of Indians                                                   $  1,993,207

Public Employees Federation                                               $  1,560,792

Civil Service Employees Association & CSEA Pac                     $  1,489,038

Healthcare Association of NYS                                            $  1,244,083

Medical Society of the State of NY                                      $  1,231,880

United Federation of Teachers                                            $  1,009,748

Trial Lawyers Association                                                   $  1,009,116

Greater NY Hospital Association                                          $     972,052

                                                                                   ___________

Total                                                                                              $23,870,140

Data from The New York State Lobbying Commission.

NYS Government

The Senate has 33 (53%) Republicans and 29 Democrats.

The Assembly has 101 (67%) Democrats and 49 Republicans.

In 2003 & 2004  lobbyists donated $120 and $144 million dollars respectively  to politicians.

Over the last 24 years incumbents won all but 34 of the last 2500 races.  (Public Interest Research Group)

State Authorities have amassed $114 billion in public debt without approval by the NYS Legislature or voters.

NYS Local Government employees 63 / 1000 citizens vs. 49 /1000 citizens nationally.

From 1997 to 2001, only 0.5% and 0.7% of the major bills passed by the assembly and senate respectively had a public hearing. 

From 1997 to 2001, only 1.1% and 0% of the major bills passed by the NYS Assembly and Senate respectively were accompanied by written committee reports.

Data from The Syracuse Post Standard, New York Business Council, and Brennan Center.

Miscellaneous

From 1990-2000, Upstate NY’s population grew at less than one-twelfth the national average.  Sadder is the fact that 30% of the new residents were prisoners!  Between 1990 and 2002, 1.7 million people moved out of Upstate.  Thirty-three percent of those leaving moved to cold climates.

            Upstate NY’s population is now made up of proportionally more seniors and fewer people between the ages of 20-30 than it was 20 years ago.  Nationally, the proportion of the population over 65 declined, while in Upstate NY it grew.  The aging population, coupled with the fact that New York State has the most expensive Medicaid plan in the country, is a recipe for rapidly escalating taxes.  New York taxpayers pay 50% more for Medicaid than the next highest state.  The average NYS Medicaid recipient receives $7,000 per year versus a national average for large states of $4,600.  In Onondaga County 1 in 17 people are on Medicaid, versus 1 in 20 in other states.   In Onondaga County, Medicaid costs have increased 42% in three years, from $55 million in 2001 to $78 million in 2004.

The situation is analogous with regard to civil service pensions.  In Onondaga County, state mandated county pension costs have moved from $1 million in 2001 to $24 million in 2004.  NYS is requiring taxpayers, many who lost some one third of their 401(k) and other retirement investments in the 2000-2003 stock market declines, to make up the civil pension losses for the same period.  Both the county portions of the Medicaid and civil pension increases are being made up with higher property and sales taxes.  The generous state pension benefits, along with an unusually high number of local government employees (63/1000 versus 49/1000 people nationally), create a $4 billion a year economic drag on the Upstate economy.  The bottom line is that proportionally more people are receiving extremely generous benefits that fewer people are providing.

            Personal income adjusted for inflation in the 1990’s increased a mere 9% in Upstate while it grew 29% nationally.  Not only do we have lower incomes Upstate, but we pay far higher taxes.   In 2002, NYS had the highest state and local taxes on personal income of all 50 states.  State and local taxes were $4,645 per capita in NYS and $3,149 on average across the country.

            From 1990-2000, NYS lost 30% of its manufacturing jobs.  NYS lost these jobs at a rate 4 times the national average.  Since 2000, NYS has lost another 18% of its manufacturing jobs.  In fourteen years, NYS has given up more than 530,000 of its highest paying jobs.  In the 1990’s, while the nation added 37% more high skilled manufacturing jobs, NYS has lost 14% of the high skilled manufacturing jobs it had.

The National Council on Compensation Insurance estimated the average cost of a worker’s compensation case in NYS to be $11,793 or 72% above the national average.

            In 2002, NYS manufacturers employed 805,200, or one of every six people employed in the state.  Yet, manufacturing is far more significant than this, as manufacturers create 2.67 other jobs with contractors and people who provide services to their employees in the retail and not-for-profit sectors.  Thus, directly and indirectly manufacturers still provide Upstate NY with 49.6% of all of its jobs.

Links:

The Brookings Institution

US Census Bureau

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