Tag: Albany

My previous posts on Upstate concerned the portion of the region that is too far away to receive any economic benefit from proximity to Manhattan, the area roughly north and west of State Route 10 and, in the mid to northern Adirondacks, Route 30.  South and west of there, in the eastern Adirondacks, the Catskills, and the Hudson Valley, the economic conditions are different, and so is the issue.  The issue is over-development, and the loss of the natural and rural attributes that draw people to the area to begin with.  When I was a child, my parents took me to northern Westchester County to pick apples.  We brought our children to Northern Dutchess County to do the same.  Projecting current trends forward, our grandchildren will have to head for Washington County to find the first pick-your-own orchard.

I exited college during the severe recession of the early 1980s, making graduate school seem attractive, and then exited graduate school during the housing bubble of the late 1980s.  Having had a housing markets class in graduate school, realizing the bubble (like this one) would burst, but unsure how long it would take, my wife and I had a plan.  We would live as cheaply as possible, save our money, and then move to a metro area in reasonably-priced Upstate New York, where we had attended college and actually liked the cool summers, lovely falls, and snowy winters (we won’t talk about March, April, and May).  For a variety of reasons – our increasing ties to the city and the end of the bubble here included – it never happened.  But one factor was we found that none of the Upstate metro areas had a large and diverse enough labor market to allow us to have careers.  Perhaps we could get a job, but it might be the job, and it would be very difficult to get another one without moving.  In other words we didn’t move to Upstate New York, in part, because none of the Upstate Metro areas, by itself, is a significant place anymore.  That is a problem Upstate will have to overcome.

I exited college during the severe recession of the early 1980s, making graduate school seem attractive, and then exited graduate school during the housing bubble of the late 1980s.  Having had a housing markets class in graduate school, realizing the bubble (like this one) would burst, but unsure how long it would take, my wife and I had a plan.  We would live as cheaply as possible, save our money, and then move to a metro area in reasonably-priced Upstate New York, where we had attended college and actually liked the cool summers, lovely falls, and snowy winters (we won’t talk about March, April, and May).  For a variety of reasons – our increasing ties to the city and the end of the bubble here included – it never happened.  But one factor was we found that none of the Upstate metro areas had a large and diverse enough labor market to allow us to have careers.  Perhaps we could get a job, but it might be the job, and it would be very difficult to get another one without moving.  In other words we didn’t move to Upstate New York, in part, because none of the Upstate Metro areas, by itself, is a significant place anymore.  That is a problem Upstate will have to overcome.

I exited college during the severe recession of the early 1980s, making graduate school seem attractive, and then exited graduate school during the housing bubble of the late 1980s.  Having had a housing markets class in graduate school, realizing the bubble (like this one) would burst, but unsure how long it would take, my wife and I had a plan.  We would live as cheaply as possible, save our money, and then move to a metro area in reasonably-priced Upstate New York, where we had attended college and actually liked the cool summers, lovely falls, and snowy winters (we won’t talk about March, April, and May).  For a variety of reasons – our increasing ties to the city and the end of the bubble here included – it never happened.  But one factor was we found that none of the Upstate metro areas had a large and diverse enough labor market to allow us to have careers.  Perhaps we could get a job, but it might be the job, and it would be very difficult to get another one without moving.  In other words we didn’t move to Upstate New York, in part, because none of the Upstate Metro areas, by itself, is a significant place anymore.  That is a problem Upstate will have to overcome.

How does this sound for an economic development slogan:  “Upstate New York, we’re just like everyplace else, except we’re older, we’re colder, we have lots of toxic contamination left over from the industrial era, we have high taxes not for services but to pay for the debts and pensions of the past, and we are highly unionized and expect higher pay and more restrictive work rules than other parts of the country.”  Well, that’s the truth isn’t it?  It isn’t the whole truth, not by a long shot.  But if Upstate New York continues position itself in the economy based on being “just like everyplace else,” it is the only truth that matters.

How does this sound for an economic development slogan:  “Upstate New York, we’re just like everyplace else, except we’re older, we’re colder, we have lots of toxic contamination left over from the industrial era, we have high taxes not for services but to pay for the debts and pensions of the past, and we are highly unionized and expect higher pay and more restrictive work rules than other parts of the country.”  Well, that’s the truth isn’t it?  It isn’t the whole truth, not by a long shot.  But if Upstate New York continues position itself in the economy based on being “just like everyplace else,” it is the only truth that matters.

How does this sound for an economic development slogan:  “Upstate New York, we’re just like everyplace else, except we’re older, we’re colder, we have lots of toxic contamination left over from the industrial era, we have high taxes not for services but to pay for the debts and pensions of the past, and we are highly unionized and expect higher pay and more restrictive work rules than other parts of the country.”  Well, that’s the truth isn’t it?  It isn’t the whole truth, not by a long shot.  But if Upstate New York continues position itself in the economy based on being “just like everyplace else,” it is the only truth that matters.

What would the change in fiscal structures and priorities I have outlined thus far mean for the economy of the one part of the state whose economy people talk about:  Upstate New York?   It would mean the ability to have a much lower cost structure, provided Upstate was willing to live with lower public expenditures, by localizing decisions about revenues and expenditures on the margin.  Upstate could choose to go on spending more if it wanted, but without draining Downstate to pay for it.

Consider the school aid formula I suggested.  It would allow Upstate New York – everyone in every part of it – to have a national average level of public school expenditures per student with little or no local tax burden.  Zip.  Nothing.  And, since incomes and spending are higher Downstate (whether that buys a higher quality of life is an open question), a substantial share of the state income and sales taxes used to fund that education Upstate would be collected outside the region, in Downstate New York.  Meaning an average level of spending would cost Upstate a below-average level of state and local taxes.  Even if spending were increased to 25% more than the national average, state taxes would still cover 80% the total, keeping local property taxes low.

What would the change in fiscal structures and priorities I have outlined thus far mean for the economy of the one part of the state whose economy people talk about:  Upstate New York?   It would mean the ability to have a much lower cost structure, provided Upstate was willing to live with lower public expenditures, by localizing decisions about revenues and expenditures on the margin.  Upstate could choose to go on spending more if it wanted, but without draining Downstate to pay for it.

Consider the school aid formula I suggested.  It would allow Upstate New York – everyone in every part of it – to have a national average level of public school expenditures per student with little or no local tax burden.  Zip.  Nothing.  And, since incomes and spending are higher Downstate (whether that buys a higher quality of life is an open question), a substantial share of the state income and sales taxes used to fund that education Upstate would be collected outside the region, in Downstate New York.  Meaning an average level of spending would cost Upstate a below-average level of state and local taxes.  Even if spending were increased to 25% more than the national average, state taxes would still cover 80% the total, keeping local property taxes low.

What would the change in fiscal structures and priorities I have outlined thus far mean for the economy of the one part of the state whose economy people talk about:  Upstate New York?   It would mean the ability to have a much lower cost structure, provided Upstate was willing to live with lower public expenditures, by localizing decisions about revenues and expenditures on the margin.  Upstate could choose to go on spending more if it wanted, but without draining Downstate to pay for it.

Consider the school aid formula I suggested.  It would allow Upstate New York – everyone in every part of it – to have a national average level of public school expenditures per student with little or no local tax burden.  Zip.  Nothing.  And, since incomes and spending are higher Downstate (whether that buys a higher quality of life is an open question), a substantial share of the state income and sales taxes used to fund that education Upstate would be collected outside the region, in Downstate New York.  Meaning an average level of spending would cost Upstate a below-average level of state and local taxes.  Even if spending were increased to 25% more than the national average, state taxes would still cover 80% the total, keeping local property taxes low.