Filling The Hole

News

The Empire Center for New York has published a “blueprint” for getting the state’s fiscal crisis under control. Setting aside the fact that the Empire Center appears to be a right-wing think tank (key words at top of website: “Freedom” “Opportunity” “Enterprise”) affiliated with the likes of the Heritage Foundation and the CATO Institute, there’s still some stuff that’s worth noting in here.

Take for example, this chart:

Even if you assume the Center's assumptions for this model were aggressive (and thereby making the budget gap look worse than it is), there's a general consensus that New York is in trouble.

The report has all sorts of private sector jargon in it (e.g., “right-sizing” and “performance-based compensation” etc), again underscoring the pro-business/small-government stance of the source. That being said, the crisis facing New York state is a bipartisan issue, and one that has been highlighted time and time again by officials ranging from the Governor to the State Comptroller. When do we need to bring spending in line with revenues (the State was dependent on Wall Street for 40% of its tax base until just recently), which will likely grow much more slowly than in years past?

Watch carefully what happens in Albany as the legislative session and Budget wrangling begins…