Friday, May 15, 2015

What Happened to "Start-Up New York?"

If this is what your friends say about you, you have a problem.

Today we turn to the New York Times news analysis of the results of “Start-Up New York,” New York Governor Andrew Cuomo’s signature program to jump start the lagging state economy.

Perhaps you have seen some of the ads. They are all over New York television and are probably appearing on television stations around the nation.

They have cost the state tens of millions of dollars and have produced next-to-no job growth.

The Times reports:

In May 2013, Gov. Andrew M. Cuomo announced a program he promised would “supercharge” the state’s economy and take job creation efforts to a level never seen before. He poured tens of millions of dollars into advertising to push the program, Start-Up New York.

In its first full year of operation, the effort created fewer than 100 jobs.

By now, most people understand that the declining fortunes (and population) of New York State is a function of burdensome taxes and regulations.

Thus, Gov. Cuomo decided to set up a program that offered temporary tax relief to companies that were willing to locate in certain depressed areas of the state.

The Times describes the program:

Start-Up New York was one of Mr. Cuomo’s marquee projects in his first term as governor, born out of his desire to create and keep jobs in New York, among the states with the highest taxes in the country. The program’s launch was steeped in rhetoric, setting expectations high. At one point the governor predicted Start-Up New York would be “the greatest economic savior for upstate New York.”

At a public event in late 2013, one Start-Up New York official said the program had “very ambitious” goals, adding the governor “would like to have up to 10,000 jobs per year added to the program.”

Happily enough, Gov. Cuomo is undeterred by the failure of his signature program:

Mr. Cuomo’s confidence in the program has been unshakable. Since late 2013, the state government has advertised Start-Up New York nationwide, spending $46.9 million to promote it between December 2013 to March 2015, according to Empire State Development Corporation, the government agency that administers the program.

Why has the program failed?

Perhaps because there is more to life than temporary tax cuts.

Perhaps because companies understand that, once moved to New York, they cannot just pick up and leave when their taxes go up.

Perhaps because the no-tax zones do not contain enough skilled workers.

Perhaps because their employees do not want to move to New York State.

Unfortunately, most of the companies that are taking advantage of the problem are in-state.

One understands that Andrew Cuomo has larger ambitions. For now, his track record as governor does not advance them.


Dennis said...

There are few companies that cannot recognize a "poisoned apple" when it is offered up. Cuomo may sincerely want to create jobs, but he really doesn't run the state of New York. The city of New York does and it is so far to the Left that it would vote for DiBlasio who sees everything in terms of corporate welfare vice the building of a job base. Considering that New Yorkers voted overwhelming;y for Obama it denotes people who will change the terms of Start-Up New York" as quickly as they gets the chance.
The Left and its hand maiden, the democrat party, cannot afford to have people have a job and do well because then there are a lot of people who no longer need the government. It is why the democrat party has kept Blacks, and almost everyone they can fool, in thrall to the government. Sadly the real Uncle Toms are the Black power structure, democrats all, that ensures their success at the expense of rest of those they hold in poverty. One only needs to look at the power structure in Baltimore and a number of large metropolitan areas.
I haven't thought this through yet, but I wonder if a city gets large enough it should become a state on its own? It would now be responsible for its own survival instead of being able to use the rest of the state as a "cash cow." I suspect the the state of New York, Illinois,et al, would do rather well without the encumbrances of New York City (Chicago.)
One of the big problems, foreseen by the Founding Fathers was the overarching power of the bigger states in relationship with the other smaller states. Here we have the problem that some cities have grow so large in relationship to the rest of the state that they have little care that they are bleeding the rest of the citizens of that state. The song "New York, New York" isn't about the rest of the state who I suspect many in Tribeca consider rubes.
There is every reason to not be surprised that this is failing because NYC is not going to allow any power centers develop in the rest of the state. It is a function of Leftisms to maintain the oligarchy it has spent years developing.

Dennis said...

I am never surprised by the lunacy opined by Leftists. The simple solution for them is to tax the retirement income. Now does it not occur to them that people are mobile and can move to other states. They will get the taxes, but they will lose all the spending that those seniors would have done in their local economy.
The answer to the question "What Happened to "Start-up New York," add any blue state here, and one gets Leftism and progressives who haven't seen a problem that isn't solved by someone else's money. The short easy solution is almost always wrong.

David Foster said...

"In order to qualify for the program, businesses must locate at least some operations in designated tax-free zones around the state on or near State University of New York campuses, create new jobs and have a business vision that aligns in some way with the university"

And I'm guessing that if I want to start a metal-bending business near one of these campuses, it won't qualify as "aligned with the vision." But if I want to start social media company #435498, or sell underwear over the Internet, that will count as "tech" and be approved.

Anonymous said...

They run these ads all the time in Texas, and we just roll our eyes - as IF anyone would fall for the BS.

Anonymous said...

Companies look at a new location build a forecast of operating costs: taxes of all kinds, permitting costs and time frames, utility costs, transportation costs, start up costs, workmen comp and other insurance. They then look and the employee's cost of living in that location, income tax, housing cost and availability, schools, crime, cultural offerings, etc. The company looks at the labor pool talent, retention, training programs and hiring costs. They do this for several locations in several states and make plus/minus comparisons and total costs over multi-year time frames. Where ever makes the best business case and where the business is welcome by all agencies and community -- they might locate. NY does not appear the understand businesses.