New York State is on the edge of an economic abyss.  Citibank, which will write-off about $18 billion, has announced it will lay off over 30,000 employees – most of whom work in New York.  Merrill Lynch, anticipating losses to top $15 billion, is turning to China and the Middle East to raise the capital needed to survive.  In 2007, over 40,000 people in the securities industry were fired, bonus payouts were significantly reduced and more of the same is expected in 2008.

With twenty percent of the state’s tax revenues coming from Wall Street-related enterprises one would think this spells big trouble for New York.  But these economic woes did not appear to faze Governor Spitzer when he delivered his State of the State Address last week.

Instead of announcing “the days of wine and roses” are over; instead of declaring a fiscal state of emergency; instead of calling for across the board spending cuts and a hiring freeze; Spitzer proposed increases in state spending. (more…)

Governor Spitzer continues his upstate public relations campaign, “Operation Strategic Investment.”

Frankly, Spitzer’s plans are not very strategic nor much of an investment. Over ninety percent of the $850 million in disbursements are redecorated bribes allocated during Pataki’s last term of office.

Payoffs to existing employers and contractors, in the form of state grants, will not revitalize upstate New York’s ailing economy. People have been fleeing the area because they can’t afford the annual property tax bill – 80% of which is dedicated to financing unfunded state mandates. Before entrepreneurs relocate to the area and invest capital, the local tax systems must be fixed.

Here’s a breakdown of the tax burden of upstate townships and cities versus New York’s most affluent and populated municipal sub-division, the town of North Hempstead. (more…)

To get the media’s focus off the scandals plaguing his administration, Governor Spitzer unveiled an $850 million economic development plan he claims will revitalize Western New York’s largest ailing cities, Buffalo and Niagara Falls.

Spitzer’s “strategic investment” scheme, which includes the construction of housing, malls and a 200 thousand square-foot sporting goods store, is not going to turn around Western New York’s economy or stop the population decline.

Over 1 million people have fled upstate New York in this century because runaway taxes have wrecked their local economies, not because they lacked housing or shopping centers. (more…)

“The role of governor, one small piece of it is to deal with the legislature. The much larger piece is to run the agencies.” 

                                                             Governor Eliot Spitzer
                                                             June 2007

“There is an unbelievable opportunity now to govern through the agencies, and that’s frankly what I’m really looking forward to.”

                                                            Governor Eliot Spitzer
                                                            July 2007

To circumvent the democratic process, Governor Spitzer has announced that he intends to govern through the 104 state authorities that are under his thumb.

Like his liberal predecessors, to avoid interference from the voters or the state legislature, Spitzer will use the vast bonding powers of these autonomous agencies to impose his will on New York taxpayers.

The following explains the financing powers of the New York State authorities and why Spitzer is focusing on these big-government murky-mazes: (more…)

In the latest round of Albany back-room dealing, the Upper East Side governor was taken to the cleaners by the senator from the sticks, Joe Bruno, and Bowery assemblyman, Shelly Silver. (more…)