Delivering on the Promise of New York State

Viewed as a whole, New York State’s economy has staggered for over three decades, listing between the prosperity of New York City and the increasingly dire economic plight of upstate communities. While net job growth in the state has been positive, not all jobs are created equal. Older, higher-paying private sector jobs—frequently found in the manufacturing sector—have been increasingly replaced by lower-paying positions, many of which depend on public funding. In his first State of the State address, New York Governor Eliot Spitzer called for a revolution in how New York approaches business attraction, retention and growth, a revolution led by Empire State Development (ESD), the state’s primary agent for economic development.

The Governor’s timing is perfect and his issues are right, but the question remains, “Can his goals be achieved?” Statewide, New York has historically been a very expensive place to do business. If the cost of doing business in New York State was reduced merely to the national average, an aggregate $35 billion a year would fall to the bottom line of the state, its businesses and its residents. To achieve Governor Spitzer’s goals of revitalizing the upstate economy and accelerating economic growth in every region, the state will need to reform its current policies and regulations and dramatically restructure its economic development efforts.