Responding to a new report from the Public Policy Institute, the new leader of the Democratic conference in the state Senate has vowed to aggressively pursue policy reforms that would make New York State more competitive and prosperous.
The December 28 state by Senate Minority Leader Malcolm A. Smith was prompted by the release earlier this week of Benchmark New York, a new PPI study. Benchmark New York shows that government-related costs of living and doing business in New York are more than $35 billion higher than if they matched such costs across the nation.
"This report shows, in stark detail, the horrendous burdens that businesses in this state are laboring under," Smith said. "These taxes, combined with rapidly rising energy prices, soaring health care costs and out-of-control worker compensation premiums, are driving our businesses out of business or out of New York."
He added, "This needs to change and the Senate Democratic Conference will lead this charge to make New York, particularity upstate New York, an environment where businesses thrive and economic prosperity can flourish.”
Smith noted that Senate Democrats have proposed a more regional approach to economic development and to the use of job-creation incentives in the state’s economic-development programs.
Smith said he hopes to work on a bipartisan basis with the administration Governor-elect Eliot Spitzer, business leaders, and officials across the state to make essential improves to New York’s business climate.
"The time to make this happen is now," Smith said. "We are going to bring forward and pass the reforms that will revitalize our State's economy and deliver the results New Yorkers deserve."
Benchmark New York compares costs for state and local taxes, energy, health-care premiums, workers' compensation, and state and local government charges. It finds, for instance, that property taxes cost New York residents and businesses $8.1 billion more than would be the case if the state matched the national average. And workers' compensation adds $1.3 billion more to the cost of doing business than if New York's average cost per case were the same as the national average, the report shows.
The additional costs for New Yorkers add up to an average of $1,830 a year for every state resident, or $5,015 for every private-sector job.
Benchmark New York is based on data from the U.S. Census Bureau, National Council on Compensation Insurance and other authoritative sources. The report is available at www.ppinys.org/nyecon/benchmarkNYS.pdf.