State Budgets

Report Ranks New York Lowest in Nation for Economic Outlook: Rich States, Poor States in The Observer

New York consistently ranks at the bottom when it comes to economic outlook.

The Observer highlights New York’s dreadful economic outlook based on the findings in The 16th edition of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index.

New York has maintained its place at the bottom of a nationwide ranking on economic outlook, according to a new report, which cites the state’s high tax burden, a “lack of fiscal constraint” and rising debt obligations. The American Legislative Exchange Council 2023 “Rich States, Poor States” report ranked New York 31st among all states in economic performance, but 50th in economic outlook.

“New York’s across-the-board high tax burden, lack of fiscal constraint and out-of-control debt growth and general unfriendliness to business and worker freedom continues to make the Empire State the Emperor of the Bottom,” the report’s authors wrote in a summary of the findings. The report ranks states on 15 metrics ranging from rates for personal, corporate, property and sales taxes to employer costs including workers’ compensation and minimum wages.

“Each of these factors is influenced directly by state lawmakers through the legislative process,” the report’s authors noted. “Generally speaking, states that spend less — especially on income transfer programs — and states that tax less — particularly on productive activities such as working or investing — experience higher growth rates than states that tax and spend more.” New York got the lowest rankings for tax rankings, including both state and local rates, placing 50th for top marginal personal and corporate tax rates, 46th for property taxes and 32nd for sales tax. The state has 593.8 public employees per 100,000 population, which ranks 10th. It is ranked 36th in a survey of judicial factors including tort litigation treatment and judicial impartiality.

Read the full article here.

In Depth: State Budgets

Smart budgeting is vital to a state’s financial health. The ALEC State Budget Reform Toolkit offers more than 20 policy ideas for addressing today’s shortfalls in a forthright manner, without resorting to budget gimmicks or damaging tax increases. One way to stabilize budgets over time is to embrace…

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