Time to reclaim New York’s No. 1 standing

By Jonathan Drapkin and Mike Oates

 

There”™s always another report to define how difficult it has become to attract businesses to New York and to retain those that we have.

The latest is this month”™s CNBC Special Report ranking America”™s top states for business. At first glance, we find New York rated a respectable 24th out of 50. But the rankings reflect an average over 10 broad categories, and that”™s where the real story lurks.

The categories related strictly to business tell a worrisome New York story: cost of living, No. 43; business friendly, No. 45; and most importantly, cost of doing business, dead last.

If New York is serious about fixing its economy then we need to change perception and reverse trends now. We have the opportunity, come January, with pressure brought to bear on a new governor and Legislature to correct our weaknesses and play to our strengths.

CNBC found considerable evidence of strength. They ranked us No. 2 in the diversity of our economy and access to major corporations, and we earned another No. 2 ranking in technology and innovation, based on infrastructure and high number of patents. Closely related was our No. 2 ranking in education, based on quality K-12 and higher institutions, which give businesses rich sources of recruitment, R&D partnerships and quality of life for employees”™ families.

So who is the top state for business? Texas. Without debating the merits of the Texan economic climate, there are a few lessons to be learned. Their state Legislature meets just six months every other year. Budgets are done once every two years ”“ imagine how efficient Albany could be on that issue alone!

Texans also boast four diverse, large cities, two of which rank in the top three for Fortune 500 headquarters ”“ placing New York City”™s  No. 1 standing in jeopardy. The innovative nature of many of their businesses is luring a talented, young demographic to the Lone Star and away from the Empire State.

By the way, after the Census is computed, that exodus will likely cost us one or two congressional seats while Texas picks up three ”“ further eroding New York”™s power at the federal level.

With limited resources, Pattern for Progress and the Hudson Valley Economic Development Corp. work to complement and leverage each other”™s efforts to improve the Hudson Valley, and specifically our region”™s ability to attract and retain business, by promoting policies and initiatives to reduce the cost of doing business in our region and state.

If we can bring down business costs while maintaining the exemplary quality of life our region enjoys, we stand a good chance of edging out competition from other states.
To reclaim New York”™s No. 1 standing, we need to reduce unnecessary burdens on business, streamline permitting and other onerous hurdles to new enterprise, and create a thoughtful state budget with proper incentives for economic development. But in the absence of good leadership in Albany, our failures will continue to become other states”™ successes.

It”™s time for Albany to step up to the plate.

Jonathan Drapkin is president and CEO of Pattern for Progress and Mike Oates is president of the Hudson Valley Economic Development Corp.