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April 2, 2014
New York ranks number-one in the Tax Foundation’s latest annual ranking of combined state and local tax burdens, released this morning.
As of 2011, the combined per-capita tax burden on New Yorkers came to 12.6 percent of per-capita state income, the report said. The national average was 9.8 percent.
But wait: the newly enacted “Grand Slam” state budget includes real cuts in corporate and estate taxes, right? What would our ranking look like if these cuts had been fully effective in 2011?
March 27, 2014
Year-over-year private job gains since 2/13; dark shading means job loss or no growth. NYSDOL map
Another month has brought another poor jobs growth report for upstate New York.
Today’s Labor Department release shows statewide private employment in February was up 1.6 percent over the same month a year earlier, trailing the national rate of 1.9 percent — a slightly smaller margin than in previous months. However, fully three quarters of the statewide job gain came in New York City, where private employment was up 88,700, or 2.6 percent. Another 17,300 jobs (15 percent of the statewide gain) were added on Long Island, boosted to at least some extent by the post-Sandy storm recovery. Continuing a recent trend, Putnam-Rockland-Westchester trailed the rest of downstate, adding 1,900 jobs for a 0.4 percent year-over-year growth rate.
In the 50-county upstate region (north of Dutchess and Orange), the reported year-over-year private job growth equated to a minuscule 0.33 percent, or 8,100 jobs.
March 20, 2014
Over at SeeThroughNY, our team works really hard to post fresh data quickly and accurately — when it’s available, that is.
Today, we updated legislative expenditures for the state Senate, but not for the Assembly, which hasn’t posted its data yet.
A week ago, the Assembly Majority assured us the data would be online in the “very near future.” The Senate made its data available back in late February. (more…)
March 18, 2014
Committed to an inflated number?
“Why are property taxes so high? Because we have 10,500 local governments,” Governor Andrew Cuomo said yesterday, repeating (yet again) his favorite mantra. Cuomo clearly wants to imply that he’s referring to 10,500 autonomous entities, falling over one another in a virtual orgy of bureaucratic excess.
“Every morning you wake up and you’re turning on 10,500 light switches, you’re starting 10,500 fleets of cars, you’re paying 10,500 insurance policies,” he has said.
But it’s just not true. Not even close.
By a commonly accepted national standard, New York doesn’t have 10,500 local governments–much less 10,500 local government light switches, auto fleets or insurance policies. The true number of local governments with any level of taxing authority is about one-third as large as the governor would have you believe.
Notwithstanding Cuomo’s claim, the data indicate that New York’s exceptionally high property taxes are not driven primarily by the number of local governments.
March 12, 2014
Is Wall Street roaring back — as a revenue-generating force for New York’s insatiable state and city governments, that is? You might get that impression from glancing at today’s press release from state Comptroller Thomas DiNapoli, which headlines the finding that the average bonus for securities industry employees in New York “grew by 15 percent to $164,530 in 2013, which is the largest average bonus since the 2008 financial crisis, and the third highest on record.”
But as the release also makes clear, the spike in bonuses paid came during a year when the profits of securities firms actually dropped by 30 percent, to $16.7 billion from $23.9 billion. DiNapoli’s release calls last year’s profit total “still high by historical standards” — but that doesn’t adjust for inflation or market capitalization. (In straight nominal terms, 2013 profits don’t look far off the average for the late 1990s.)
March 10, 2014
As if $420 million in annual handouts to the film and television industries wasn’t enough, New York State legislators are now proposing to give millions to the music industry and Broadway.
Assemblyman Joseph Lentol, D-Brooklyn, introduced legislation creating a music credit that would reimburse 20 percent of production expenses, including artists’ royalties, session fees, music videos and marketing, and would cost New York up to $60 million a year. Theater fans are getting some love from Assemblyman Angelo Santabarbara, D-Rotterdam, and Sen. Betty Little, R-Queensbury, who crafted a $5 million credit for 30 percent of a show’s production costs in an attempt to attract touring theater companies to upstate locations.
March 6, 2014
New York State added private jobs at a slower pace than the nation as a whole during the 12-month period ending in January, according to data released today by the state Labor Department.
Year-to-year private job growth map from the state Labor Department
Statewide private employment as of January was up 1.7 percent from a year earlier, compared to 2.1 percent nationally.
Thanks to yet another month of strong job growth in New York City, private employment in the downstate region grew at a faster-than-average 2.5 percent clip. However, the 52 counties categorized as “upstate” by the Labor Department (including Dutchess and Orange, although they are within the downstate Metropolitan Commuter District) created jobs at a much more sluggish pace of just 0.5 percent.
The map at right illustrates a familiar pattern of growth and non-growth by county, with the darkest shadings indicating little or no increase in private-sector employment. The key table from the Labor Department press release is at the end of this post.
The regional variance in job growth continues a multi-year trend.
Despite the not-rosy fiscal status of the county, the Suffolk County Legislature approved the last outstanding contract for county police officers. (In January, Moody’s listed Suffolk County among the municipal bond issuers facing a credit rating downgrade.)
The newly minted contract with the Superior Officers Association will cost taxpayers $55.4 million through 2018. The three police union contracts negotiated by County Executive Steve Bellone since 2012 will come to $372 million — equivalent to about 18 percent of the county’s own-source revenues at the start of the contract period.
February 26, 2014
Photo via NY1
Gov. Cuomo today announced yet another enormous state tax subsidy for the entertainment industry — this time for Disney and Netflix to produce a live-action Internet TV series based on Marvel Comics superheroes in New York City.
The incentive will come out of New York’s $420 million-a-year Film and TV Production Credit program, which reimburses up to 30 percent of production costs in New York. It’s a sweet deal, as explained in an unpublished research study prepared for the governor’s Tax Reform and Fairness Commission last fall:
… Based on IRS industry-specific data, a 30 percent credit would equal about 55 percent of taxable income of a typical film production firm. In 2008 (the latest year for which detailed data are available), the credits received by 31 film production industry taxpayers exceeded the combined tax liability of the entire industry — all 1,600+ firms — in nine of the ten previous years. Because the credit exceeds tax liability many times over and is refundable, in effect it is a program of cash payments by the state to credit recipients. [emphasis added]
February 21, 2014
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Gov. Cuomo today signed a bill that further distances him from the longstanding state policy of tying strong oversight strings to deficit bonding requests from fiscally troubled local governments.
The bill in question allows the Long Island city of Long Beach to borrow up to $12 million to deal with its budget deficits — no strings attached.
Legislation allowing the city to borrow was vetoed late last year by Cuomo, who didn’t express any reservations about borrowing, but noted that the deadline for issuing bonds had come and gone. The state Legislature saw this problem coming, though, reintroduced the borrowing bill with a new deadline and no strings attached.
Cuomo already has given a rubber stamp to $96 million of deficit bonding for Rockland County and on this second time around, without any technical errors to hide behind, he broke out the rubber stamp for Long Beach. The governor’s approval message is not yet available, so we don’t know his reasoning for going along with this plan.