Will New York State Ever Recover?

As we get doctors asking questions about some states in which they want to practice, we are regularly queried about the viability of New York State.

Based upon the data we have, New York SHOULD do well over the next five years due to demographic trends but may not due to artificial factors such as taxes. It seems that people want to live in New York, including in its upper-state. From our observations, there are even employers who want to open up in Troy, Albany, and Schenectady but are having a tough time due to the regulation mentality that is coming from "The City."

The state is heavily unionized and shows little sign of changing. We watch carefully the proposals of Governor Cuomo who seems to SAY the right things about increasing employment and reducing regulation. We want to see if his proposals are picked up in Albany and made into law. Of all the benefits that New York has, one of the best things that can be said is, "At least it isn't New England!" What is meant by that is a tendency for businesses and affluent people to move out of increasingly hostile states but to stay within the region. As an aside, we think that there may yet be several corporations that pick up and move from Rhode Island in the next two years to relocated either in New York or New Jersey.

But the real story seems to be the potential that we see in New Jersey (particularly in northern New Jersey) as individuals, businesses, and some large employers take a second look at a state that has decided it WANTS to increase its tax rolls without raising taxes and increasing regulation.

So, to answer the question, about New York State's future, we have to look to the governor and make our recommendations on what he does through 2011. The state's future growth and potential lie in the balance.