The Real Story Of New York’s Economic Gap

For example, New York lost its claim on innovative engineering in good part because its universities fell behind in the game of basic research. California universities now get roughly four times as many government research dollars on a per-capita basis as New Yorks do and nearly seven times as much industrial-research support. Back in 1961, New Yorks institutions were at rough parity with Californias. But there are larger reasons why robust growth eludes New York in particular, its well-earned reputation as being hostile both to business and economic success. New Yorks comparatively high taxes (on corporate and personal incomes, on estates and property) coupled with the most aggressive regulatory climate in the nation, surely signal that growth should be happening elsewhere. Then, too, every New York employer knows another reason why no one would relocate a plant here the scaffold law is code for an unbridled tort bar. (One of Texas Gov. Rick Perrys key arguments in recruiting business from New York and other states is that Texas has reined in class-action suits.) To have any hope of moving forward on a competitive basis with other states, New York must reduce its tax burden by lowering taxes and eliminating its estate tax. To do this, it has to get control of its civil service. Pay and extraordinary benefits where a jail guard in Syracuse can retire on $160,000 have to be recalibrated to fit a state that no longer needs nor can afford an oversized and self-protecting bureaucracy. Most of all, it must focus on big problems with a view that only by making objective gains on several fronts will New Yorks economy really come back. The states politicians initiate programs apparently without wondering if they can genuinely help the economy. Declaring a few acres around state campuses to be tax-free zones begs further cynicism, since everyone knows that even if these do lure a few tax-protected firms, their effect would be too small to make any difference in the overall situation. No, New York has to get serious. It might look to the fiscal discipline of other states (Texas, Florida, Indiana, Tennessee) that have cut spending in order to cut taxes for everyone.

Federal Energy Regulatory Commission (FERC) to reconsider its August decision allowing the state’s power grid operator, the New York Independent System Operator (NYISO), to create a new capacity zone in the Lower Hudson Valley that includes New York City. The NYISO has said it designed the new capacity zone to maintain system reliability and attract investments in new and existing generation and demand response resources. In basic terms, capacity markets pay generators to help keep existing power plants in service and build new units in order to maintain system reliability. Demand response providers who agree to reduce power usage when needed can also participate in capacity markets. The new zone will include the current NYISO zones G, H and I in the Lower Hudson Valley and zone J in New York City. The PSC and NYPA said the state is already working on New York Governor Andrew Cuomo’s so-called Energy Highway initiative to expand the state’s transmission resources to bring more power from upstate New York to the Lower Hudson Valley and New York City area. The PSC and NYPA said the Energy Highway could negate the need for FERC to offer financial incentives to build more power plants downstate. “We strongly urged FERC to reconsider its decision to create a new capacity zone in New York, which it says is needed to build more power plants downstate to alleviate demand for electricity,” PSC Chairwoman Audrey Zibelman said in the release. “We are well aware of the downstate demand for electricity…However, in its decision, FERC did not take into consideration the ongoing initiatives included in the Governor’s Energy Highway,” Zibelman said. The biggest power companies in New York include units of Consolidated Edison Inc, National Grid Plc, Iberdrola SA, Entergy Corp, TransCanada Corp and NRG Energy Inc. COSTS TO RISE The PSC said if FERC’s plan goes into effect, typical residential customers in the Lower Hudson Valley could see monthly bill increases ranging from 5 percent to almost 10 percent, depending on the utility. The increases for industrial and commercial customers could be even higher, the PSC said. “Creation of a permanent new capacity zone undermines the Governor’s Energy Highway initiatives,” Gil Quiniones, NYPA president and chief executive, said in the release.

Late Cahill equalizer gives New York result in Seattle (Video)

For New York, playing without their two best players, this draw will only look better on closer examination. For Seattle, while a late equalizer leaves the feeling of points lost, theyre still in-control of their Supporters Shield fate, a position which would have been slightly more precarious had they contrived to lose on Sunday. But with the 1-1 result, the Sounders remain one point behind East-leading New York in the Supporters Shield chase, and with two games in hand, the Western Conference co-leaders remain favorites to claim their first regular season title. This weekends results did see Real Salt Lake pull even with them in the West, but still holding two games in hand on their Rocky Mountain foes, Seattle can only be so disappointed with the weekends results. Against New York, Sigi Schmids team took the lead just before intermission, finally coming good on a slew of late-half chances when Brad Evans converted from the spot. But Seattle lost their edge in the second, allowing New York to hit the woodwork twice before Tim Cahill, lost in the left of the penalty area, buried a late equalizer. The right-footed curler inside Michael Gspurnings far post gave Red Bull a well-earned point from a match few saw them winning. Thats because Thierry Henry, with a chronic Achilles condition, was a no-go. Jamison Olave was scratched, too, his knee costing him the battle of conference leaders on Seattles FieldTurf surface. Though highly-debated during the week, the decision proved prescient as a unexpectedly heavy storm saw Sundays match played beneath a downpour. In those conditions, without their two best players, New York have to be happy with the point, even if they failed to deal a blow to Seattle. For the Sounders, the result may be disappointing, but they didnt lose any ground. Against a backline that had not played together before this season, the team may not be satisfied with a draw, but now seven unbeaten and with only one loss in their last 11, the Sounders continue to position themselves for home-field advantage throughout the playoffs.

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