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Welcome

The Fiscal Policy Institute (FPI) is an independent, nonpartisan, nonprofit research and education organization committed to improving public policies and private practices to better the economic and social conditions of all New Yorkers. Founded in 1991, FPI works to create a strong economy in which prosperity is broadly shared.

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Grow Together or Pull Further Apart? Income Concentration Trends in New York
This December 2010 report documents the pronounced concentration of income growth that has occurred in New York State and New York City since 1980 - the first time that state income tax data has been compiled to analyze trends in income growth by various segments of the state's population. Among the findings: The richest one percent of households increased their share of all income statewide from 10 percent in 1980 to 35 percent in 2007, while in New York City the income share going to the top one percent rose from 12 percent to 44 percent. Release >> Report >>

The Fiscal Policy Institute's Testimony on Governor Cuomo's Proposed Cap on Real Property Taxes
At the March 1, 2011, public hearing on the Governor’s proposed "Cap on Real Property Taxes" before the Assembly Standing Committees on Ways and Means, Education, Real Property Taxation, Local Government and Cities, FPI's executive director, Frank Mauro, explained why a cap on real property taxes would not effectively protect those most in need of property tax relief, and would exacerbate inequities in the current school finance system. In the short run, a property tax circuit breaker would provide effective and targeted relief. Over time, New York should reform its state-local tax system by having the state gradually assume responsibility for the financing of a greater share of the essential services that New York State provides through its local governments. Testimony >>

Incorrect diagnosis of New York's property tax "problem" will lead to a remedy that is likely to do more harm than good
Massachusetts' experience with Proposition 2 1/2 does not support the claim that a cap of the type proposed by Governor Cuomo is workable let alone desirable. If a hard cap of the lesser of 2 percent or the rate of inflation, with no overrides, had been in effect in Massachusetts since 1981-82, that state's property tax revenue would be about 60 percent less than it currently is. The Governor's proposed cap would undermine the quality of the entire array of locally funded public services while providing very little relief to those homeowners who are most overburdened by real property taxes. New York can learn from the Massachusetts experience but not if it ignores the reality of that experience. Analysis >>

New York Shouldn't Look to Massachusetts as a Model for Property Tax Reform
With Governor Cuomo proposing a rigid cap on property taxes based on Massachusetts' Proposition 2½, this 2010 update of a landmark report from the Center on Budget and Policy Priorities should be must reading for New York policymakers. This report describes the problems the cap has created in Massachusetts and explains why the impact could be even more severe in New York. Among the key lessons of the Massachusetts experience:

  • A tax cap won't make government services cost less.

  • Claims that caps will produce large savings through “efficiencies” are overblown.

  • Tax caps can be particularly harmful if adopted during a weak economy.

  • State aid can't be relied upon to fill the gap.

  • Changes in school enrollment can have a big impact.

  • Without effectively targeted state aid, low-income communities will fall even further behind.

  • Wealthier communities will override a tax cap more frequently than poorer ones.

  • Middle-income communities might end up bearing the brunt of a cap.

More about Massachusetts' Proposition 2½: 
     2008 NY release - html, pdf
     2010 Executive summary - html
     2010 Full report - pdf

Proposal to Recapture High End Federal Tax Cut Windfall
In the wake of the historic agreement between the President and the Republican Congressional leadership to extend the Bush tax cuts for the wealthiest, the New York City Council's Progressive Caucus has developed an interesting proposal. The proposal calls for the state of New York to impose a temporary income tax surcharge to recapture for New York the "windfall" high income New York filers will be receiving. Read more >> Related: an op-ed by Brad Lander, co-chair of the Progressive Caucus.

A Balanced Approach to Closing State Deficits
Most states are heading into their third year of fiscal crisis facing severe revenue shortfalls that require closing huge deficits. The choices states make about how to close those deficits have serious implications both in the short and long term. States that rely solely or primarily on widespread budget cuts to close deficits are harming residents and businesses that need immediate assistance; they also are reducing demand in the economy and impeding their state's economic recovery. This paper by Iris J. Lav of the Center on Budget and Policy Priorities discusses the challenges.

Federal Fiscal Relief Is Working as Intended
A study from the Center on Budget and Policy Priorities profiles the American Recovery and Reinvestment Act (ARRA) in New York and Virginia. The experience of these two states suggests that the state fiscal assistance in the economic recovery legislation is having its intended effect: enabling states to balance their budgets with fewer cuts in public services that would harm residents and further slow the economy.  More >>

Nobel Economist: Millionaires' Tax Is Economically Preferable
In a March 27, 2008 letter to Governor Paterson, Majority Leader Bruno and Speaker Silver, Nobel economist Joseph Stiglitz makes a compelling case that the millionaires' tax is "economically preferable" to raising regressive fees or cutting state spending. Also see:
Voters Support Income Tax on Those Making $250K or More to Replace Budget Cuts, a Siena Research Institute poll released January 26, 2009; Closing state deficit requires prudence, by former budget director Dall Forsythe and Shanna Rose (Albany Times Union, December 10, 2008) and How Not to Deal with the Oncoming Depression: The Case of New York State, by Lawrence S. Wittner, Professor of History at SUNY Albany (History News Network, December 1, 2008).
Related: Look to the rich for a budget fix, by Fred LeBrun (August 3, 2008 Albany Times Union), Voters Back Millionaire's Tax 4 - 1 (Quinnipiac poll, August 6, 2008).
More >>

Budget Cuts vs. Tax Increases at the State Level: Is One More Counter-Productive than the Other During a Recession? 
In this 2001 essay, Dr. Joseph Stiglitz, University Professor of Economics at Columbia University and one of the recipients of the 2001 Nobel Prize in Economics, and Dr. Peter Orszag, who is now the Director of the Congressional Budget Office, explain why budget cuts and tax increases are both counterproductive during a recession and how economic reasoning can help state policy makers in selecting the least damaging mix of budget balancing strategies during economic downturns. More >>

Working for a Better Life: Immigrants in New York's Economy
What role do immigrants play in the New York State economy? This profile of immigrants in the state economy shows that in 2006, they added $229 billion in economic activity - fully 22.4 percent of the state's gross domestic product. FPI also examines what countries  immigrants come from, where they work and how well they are doing. The report includes detailed analysis of the role of immigrant workers and families in three distinct regional economies: New York City, the downstate suburbs, and upstate.

An Agenda for Shared Prosperity
With a new governor in Albany for the first time in 12 years, New Yorkers have high expectations for the future, seeing a rare opportunity for the state to reevaluate its policies in a wide variety of areas. Explore One New York to learn more about FPI's contribution to this much-needed effort, from November 2006.

Danger & ripoffs are on the rise: How hot construction biz brings a black market, scams & death. A  series of stories in the Daily News describes the human side of FPI's recent report, The Underground Economy in NYC's Affordable Housing Construction Industry.
Also see the follow up story on Mayor Bloomberg's reaction: We'll make quick fix, Mike vows.

Corporate Tax Policy and the Right to Know: Improving State Tax Policymaking by Enhancing Legislative and Public Access (PDF). Prepared for the Fiscal Policy Institute in 1993 by Richard D. Pomp, the Alva P. Loiselle Professor of Law at the University of Connecticut's School of Law and the former Executive Director of New York State's Legislative Tax Study Commission.

BEHIND THE NEWS: What is the Regional Greenhouse Gas Initiative (RGGI) and how can it be most effectively implemented? To better understand the economics of the implementation of the RGGI, which  was  adopted in December 2005 by the Governors of seven Northeastern states under Governor Pataki's leadership, read the following paper by J. Andrew Hoerner of Redefining Progress: Regional Initiatives to Reduce Greenhouse Gasses: The Crucial Importance of Auctioning Permits for Jobs, Competitiveness, and Equity (PDF). Also worth reading on this subject are the Preliminary Oral Comments of New York State Attorney General Eliot Spitzer on the Allocation of Carbon Dioxide Allowances Pursuant to the Regional Greenhouse Gas Initiative Cap-and-Trade Program (HTML) as delivered by New York State Assistant Attorney General J. Jared Snyder to a meeting of the RGGI's Stakeholder Group in Hartford, CT on May 2, 2006.

The Great American Jobs Scam: Corporate Tax Dodging and the Myth of Job Creation by Greg LeRoy (published July 21, 2005 by Berrett-Koehler Publishers, Inc.) Available in most local bookstores and online through all book selling services.

Charlotte Cuno et al., v. DaimlerChrysler et al. (PDF). In a landmark decision issued on September 2, 2004, the US Court of Appeals for the Sixth Circuit ruled that the State of Ohio's investment tax credit violated the Commerce Clause of the US Constitution.  Rather than immediately appealing this decision to the US Supreme Court, DaimlerChrysler asked the Sixth Circuit to take the unusual step of rehearing the the case en banc. Click here for Appellants' Memorandum in Opposition to Petitions for Rehearing En Banc in the Case of Charlotte Cuno et al., v. DaimlerChrysler et al. (PDF) The Sixth Circuit subsequently declined this request and DaimlerChrysler then asked the Supreme Court to hear its appeal of the Sixth Circuit's decision. That request was granted and DaimlerChrysler et al. filed their briefs with the Supreme Court on December 5, 2005.  The plaintiffs/respondents filed their briefs by January 23, 2006. The Fiscal Policy Institute was among the various organizations that filed amicus briefs with the Supreme Court in this case.  Click here for a copy of the amicus curiae brief filed by the Fiscal Policy Institute together with Connecticut Voices for Children and Good Jobs First.  Oral arguments were heard by the Supreme Court on march 1, 2006.  If the Sixth Circuit's decision is upheld by the Supreme Court, it would serve to substantially de-escalate the current economic war among the states; in effect, serving to save the states from themselves.  For a general discussion of this issue see Ideas for Ending (or, At Least, De-escalating) the Economic War Among the States (PDF), a paper presented by FPI Executive Director Frank Mauro at symposium on the Economic War Among the States co-sponsored by FPI and Good Jobs First at Georgetown Law Center, June 26, 2003.

Chapter 40 of the Laws of 2004 of the State of New Jersey (PDF) In this new law which was approved on June 28, 2004, New Jersey increased its top income tax rate, for tax years beginning on and after January 1, 2004, from 6.37% on the portion of taxable income above $75,000 for single individuals and $150,000 for married couples to 8.97% on the portion of taxable income above $500,000 regardless of filing status.  This represents a significant shift in the traditional relationship between the top  income tax rates in New York and New Jersey. For the first time in history, the top New Jersey rates are now substantially higher than the top New York rates. New York State's temporary top rate of 7.7% on taxpayers with taxable incomes of $500,000 or more is schedule expired on December 31, 2005. New York's current top income tax rate is 6.85% for married taxpayers with taxable incomes above $40,000 and single taxpayers with incomes above $20,000. The 6.85% top rate is more than 55% lower than the state's top income tax rate in 1974.

Rethinking Growth Strategies   (HTML). Professor Robert Lynch's  comprehensive review of all the academic research on How State and Local Taxes and Services Affect Economic Development  (HTML). Published in March 2004 by the Economic Policy Institute. Robert Lynch is Chair of the Economics Department at Washington College in Chestertown, Maryland, and former chair of the Economics Department at SUNY Cortland. 

 

 

For the latest about FPI, please visit FPI in the news.

May 7, 2012.  Helping the Helpers Will Help Us All: The Economic Situation of New York City's Health Care and Social Assistance Sector. This report looks at the importance of jobs in the nonprofit health care and social assistance sector in New York City, and examines how the hardships facing the city's low-income population -the main constituency served by the nonprofit human services sector - have grown in the wake of the Great Recession of 2008-2009 and the weak recovery over the past three years. More >>

April 23, 2012.  Raising New York State's Minimum Wage. Testimony presented to the New York Assembly Labor Committee by James A. Parrott. Ten reasons: (1) to restore the minimum wage's lost purchasing power, (2) to raise New York's wage floor, (3) to help low-income families. And because it (4) won't reduce employment, or (5) hurt taxpayers. But, it will (6) boost the economy (and jobs), (7) complement the EITC, and (8) reduce burgeoning income inequality. Increasing the minimum wage will (9) restore New York's leadership on progressive issues and (10) combat the depressive impact of high unemployment.

April 18, 2012.  Increasing New York State's Minimum Wage. Testimony presented at the New York Senate Democratic Conference's public forum by Frank J. Mauro.

April 16, 2012.  Testimony on the importance of libraries to integrating immigrants. Before a New York City Council hearing about the impact of Mayor Bloomberg's proposed budget cuts to libraries, FPI's David Dyssegaard Kallick stressed the important role libraries play in helping to integrate immigrants into the social and economic fabric of New York City.

April 1, 2012.  New York state keeps its welfare promise - sort of. An op ed by Carolyn Boldiston, Poughkeepsie Journal.

March 21, 2012.  The Governor's Proposed 2012-2013 New York State Budget: Continued Scarce Funding for Women, Families and Youth in a Weak Recovery. With a weak recovery, unemployment remains high and hardships have mounted for many New York City women, families and youth. Despite growing needs, three years of state budget cuts have frayed the safety net, making it harder for low-income women to access income and job supports as well as vital supportive services, and to secure jobs with a future. The governor's proposed budget makes further cuts in many human service areas and fails to make up lost ground in areas hit hard by cuts in recent years. Brief >>

March 19, 2012.  What’s happening with temporary assistance for New York State’s neediest families? A modest increase in the basic allowance is scheduled for July 1, 2012. The Assembly has proposed implementing the increase as scheduled. The Senate, on the other hand, has proposed eliminating it completely. Even with the increase, the public assistance grant is less than half the federal poverty threshold in fifty-five counties - and just 50 to 53 percent of the threshold in the other seven counties. Moreover, New York was recently awarded $40.7 million in additional federal TANF Contingency Fund awards. This funding could be used to fully implement the scheduled grant increase without delay and with virtually no additional cost to the state or to local governments this year. Brief  >>

March 19, 2012.  Counterbudget: Putting People First, Budget Issues that Need Attention. The Counterbudget was compiled by New Yorkers from Fiscal Fairness with input from FPI and other cooperating organizations. Report >> Press release >>

March 9, 2012.  The New York State DREAM Act: A preliminary estimate of costs and benefits. The New York State DREAM Act would open the state's Tuition Assistance Program (TAP) to all students who meet the funding criteria, irrespective of their immigration status. What would be the costs and benefits of this proposal? This brief is the latest release from FPI's Immigration Research Inititative. Read the brief >>

March 9, 2012.  How much does the Tier 6 proposal reduce employee retirement benefits? This brief quantifies the value of the reduction in retirement benefits to the typical member of the NYS Employees' Retirement System (ERS) under the Tier 6 proposal, and finds that the proposal reduces the employee benefit by 39.8 percent. Read the brief >>

March 8, 2012.  Groups call on Governor Cuomo to drop transfer language from state budget, noting that the language undercuts legislative authority. FPI and 16 other groups delivered a letter to Governor Andrew Cuomo today asking him to drop language included hundreds of times in his executive budget proposal for 2012-2013. The language effectively removes the public from decisions regarding the use of taxpayer money by giving the Governor power to move money between state agencies without oversight. The language goes even further than that, authorizing suballocations from "on budget" state agencies to "off budget" public authorities. Press release >> Letter to Governor >>

March 6, 2012.  Briefing on Mayor Bloomberg's Preliminary FY 2013 New York City Budget. Unemployment remains very high in this historically weak "recovery" in NYC, as across the country, and considerable hardships persist. In addition, NYS budget choices and pressures continue to squeeze NYC. The Mayor's budget can only be described as austere: although needs have grown in the wake of the recession, NYC spending on human services funding has fallen by 10 percent. Income concentration has resumed, underscoring the need for progressive tax reform. NYC's business tax expenditures have risen sharply; addressing several tax inequities could provide tax relief where most needed and strengthen the revenue base.

February 17, 2012.  Which workers will benefit, if the New York minimum wage is raised to $8.50 an hour? This brief estimates how many workers will benefit (a million!) and breaks down the data by demographic category. It shows how many live in New York City, versus how many live in the NYC suburbs and upstate, and also includes an estimate of the positive job creation impact of an increase in the minimum wage. The brief is part of the Numbers that Count series, in which FPI presents and analyzes new data on New York's economy.

February 16, 2012.  Blacks and Hispanics bear the brunt of the continuing unemployment crisis in New York and across the country. New data show that New York's black and Hispanic workers have been hit especially hard by joblessness during the recession and the weak recovery. According to a report released today by the Economic Policy Institute, No relief in 2012 for high unemployment for African Americans and Latinos, New York is one of 14 states with double digit unemployment rates for both blacks and Hispanics. Release with New York figures>> Report>>

February 13, 2012. Testimony at the Joint Legislative Public Hearing on the 2012-2013 Executive Budget Proposal - Human Services. Submitted by Carolyn Boldiston, FPI's Senior Fiscal Policy Analyst. Includes: trends in public assistance participation and poverty in New York State, a review of New York's historical utilization of the federal Temporary Assistance for Needy Families (TANF) block grant, a review of the impact of the TANF Contingency Fund and Emergency Contingency Fund on TANF funding and spending in New York State, and recommendations for the 2012-2013 state fiscal year.

February 12, 2012.  N.Y. minimum wage doesn't stretch as far as it used to. An op ed by Frank Mauro, Poughkeepsie Journal.

February 8, 2012. Transfer Authority: The Governor and the New York State Budget. WBAI Evening News. Andrea Sears of WBAI interviews FPI Executive Director Frank Mauro about the provision that Governor Cuomo has included in his 2012-2013 State Operations and Capital Projects appropriations bills proposing to give unprecedented powers to the Governor's Budget Director to redirect funds from many state agency appropriations to other agencies and public authorities, even off-budget public authorities. The interview with Mauro is 6.5 minutes long and starts at 3:28 of this clip from the WBAI Evening News. It follows a related interview with Roger Downs of the Sierra Club.

February 6, 2012.  Testimony of Frank Mauro, Executive Director of the Fiscal Policy Institute, presented to the Senate Finance and Assembly Ways & Means Committees' Public Hearing on the 2012-2013 Executive Budget.

January 31, 2012.  National tax expert calls for closing New York State Tax loopholes. Lawmakers, tax experts and advocates gathered to urge that corporate tax loopholes be closed, pointing to a recent report from Citizens for Tax Justice and the Institute on Taxation and Economic Policy, Corporate Tax Dodging In the 50 States, 2008-2010, which reveals glaring inequities in the way that businesses are taxed (or not taxed). Working from the principles of enforcement, fairness, and transparency, the their taxes, reforming the state’s Corporate Alternate Minimum Tax, taxing nonresident hedge fund management fees, eliminating New York City’s carried interest exemption, cracking down on schemes that create "nowhere income," and requiring public disclosure of corporate tax payments for publicly-traded companies. Release>>  Report>>

January 31, 2012.  New York State's Economic and Fiscal Outlook for 2012-2013. The Fiscal Policy Institute's 22nd annual budget briefing.

January 30, 2012.  Raising New York's minimum wage will boost the state economy. The change would directly benefit about one in six of New York workers - that is, 1.6 million low-wage workers - and their families. Most (90 percent) of these low-wage workers are adults and a greater share are women, black or Hispanic than for New York workers overall. The minimum wage in New York is low by historical standards - at one time it could keep a family of three out of poverty - and in comparison to other states. Moreover, the increased purchasing power of low-wage workers will pump much-needed demand into local businesses and communities and will create roughly 25,000 new jobs in New York State over three years. Release >> Report >>

January 19, 2012.  Sizing up the Governor's Proposed 2012-2013 Executive Budget in its Economic Context. A briefing document by James A. Parrott, Ph.D., Deputy Director and Chief Economist, Fiscal Policy Institute.

January 9, 2012.  Coalition calls on Governor and Legislature to close corporate tax loopholes and level the playing field for small business. A coalition of community, labor, student, faith and Occupy organizations gathered to release a list of corporate tax dodgers and to announce their campaign to bring fairness and transparency to New York's corporate tax system. The group, which formed last year to work on the "millionaires tax" and personal income tax reform, is calling on Governor Cuomo and the Legislature to close corporate tax loopholes, thereby raising over one billion dollars for this year's state budget. The additional revenue will help New York to create jobs, create a fairer environment for small business, and prevent devastating budget cuts. Release>>

December 9, 2011.  Testimony on "DREAM Act" Legislation. Testimony on "DREAM Act" Legislation. FPI's David Dyssegaard Kallick was invited to deliver testimony before a joint hearing convened by the New York State Assembly Standing Committee on Governmental Operations and Standing Committee on Higher Education. He testified that going to college allows immigrants - even undocumented immigrants - to improve their employment opportunities, thereby boosting their contribution to the economy and to tax revenues. "Their success is also our success," Kallick noted.

December 5, 2011.  Reforming the New York Tax Code. Consistent with Governor Cuomo's call for a tax system that is fairer and more affordable while helping to put more New Yorkers back to work, this report presents a "top 1%" progressive income tax plan. The plan raises less revenue than the current "millionaires tax," but enough revenue to avoid job-killing budget cuts, make job-creating investments, and provide middle class tax relief. The proposed progressive bracket structure would apply to taxpayers with incomes above $665,000, the estimated threshold for the top one percent in the current New York economy. Taxpayers with taxable incomes up to $5 million would pay less than they pay now under the temporary surcharges scheduled to expire at the end of 2011.

December 4, 2011.  Fairer taxes, more jobs: Gov. Cuomo needs to look out for the unemployed. An op ed by James Parrott and Frank Mauro, New York Daily News. New York is in a state of inequality. But we can balance the budget, provide real middle class tax relief and a boost to job creation, all through sensible income tax reform.

December 2, 2011.  New York's Unemployment Crisis and Income Polarization: Looking to State Policy for Solutions. Slides presented by James Parrott at the Center for Working Families' 2011 NYS policy conference: Good Ideas in Hard and Exciting Times: Policies for New York's 99%. The last two slides show the overall regressivity of the New York State and New York City tax systems.

November 29, 2011.  Great Recession takes a $31 billion toll on New Yorkers. New data show that New York families face smaller incomes, fewer opportunities, more hardship. The Fiscal Policy Institute's 2011 annual edition of the State of Working New York examines how bad the Great Recession and the not-so-great "recovery" have been for the wages and incomes of typical New Yorkers. Of the 504,000 jobs lost, 80 percent are wage and salary positions, and  about 20 percent represent fledgling businesses that haven’t been started because of the difficult economic climate. Median household incomes in New York State fell by 3.2 percent from 2007 to 2010, and weekly earnings have fallen for New York workers in the bottom half of the pay spectrum. Press release and report >>

November 22, 2011.  Testimony on the Living Wage before the New York City Council Committee on Contracts. FPI's James A. Parrott delivered testimony detailing the following points: There is no evidence from other cities to show that living wage ordinances are harmful either for workers directly affected or for the broader local economies. The Charles River Study is seriously flawed in both its labor market and its real estate analyses, and should not be used to inform decisions on this issue. The City should return to the question of how its considerable economic development resources can be used to create better jobs - and help raise wages and living standards. The result of rent negotiation should be acceptable to tenants (often, the largest employers affected by the living wage requirement) and realize a reasonable profit for the landlord (often the beneficiary of subsidies or land use changes).

October 27, 2011.  New Americans on Long Island: A Vital Sixth of the Economy. Immigrants - documented and undocumented combined - make up 16 percent of the population of Long Island, and account for 17 percent of total economic output. This report presents data on jobs, earnings, family income, taxes, and home ownership. Immigrants' economic role is examined town by town and in a national context as well. Among the 50 most affluent suburban counties in the country, Nassau and Suffolk are neither at the top nor the bottom of any of several measures of immigration. Driving  immigrants away from Long Island would exact a high price to the social fabric and to the local economy. Press release and report >>

October 11, 2011.  New group calls for boosting New York mass transit manufacturing: enhanced MTA investments could create good jobs and bolster New York's recovery. While unemployment news remains bleak across the state and country, a recently released white paper, Building New York's Future: Creating Jobs and Business Opportunities Through Mass Transit Investments points to the benefits of a broad transit manufacturing strategy. A new group - Building New York's Future - has formed with the mission of developing and implementing a mass-transit related economic development strategy, building political commitment to the strategy across the state, and promoting adequate funding for the MTA and all of New York State's transit authorities. Press release >> White paper >>

October 5, 2011.  Bloomberg Administration Releases Flawed Living Wage Study. Working together, the National Employment Law Project, FPI, and Good Jobs New York find that the study released today ignores basic flaws flagged months ago, flaws in both factual assumptions and research methodologies. And, the study's relevance is questionable, since it fails to account for changes to the living wage proposal announced this month, which clarify that the proposal will not cover the most of the project types comprising the bulk of the study. The study - believed to be the most expensive taxpayer-funded wage study in U.S. history - is a lost opportunity and poor use of city resources. Press release >>  Initial assessment, May 12 >>

October 3, 2011.  Immigrant Small Businesses in New York City. New numbers from FPI's Immigration Research Institute show that immigrants make up almost half of all small business owners in New York City.  And, immigrants in the labor force are somewhat more likely than U.S.-born workers to own small businesses. Immigrant small business owners are an extremely diverse group, with no single country of origin dominating; in fact, the top ten groups together still make up just 45 percent of the total number of immigrant small business owners. The businesses immigrants own range across all sectors of the economy. More >>

September 27, 2011.  Building New York's Future: Creating Jobs and Business Opportunities Through Mass Transit Investments. This white paper finds that as New York comes out of the most severe economic downturn since the Great Depression, the state can and should pursue a mass transit-related manufacturing strategy, positioning itself as a leader in sustainable transportation while creating good, middle class jobs for New Yorkers. Working toward broad political commitment and securing adequate funding for New York's transit authorities' capital and operating budgets, and for national mass transit infrastructure, are necessary complements.

 

September 26, 2011.  Brooklyn Labor Market Review - Fall 2011. Prepared by FPI  for the Brooklyn Chamber of Commerce, the latest issue of the BLMR finds that Brooklyn led all boroughs in job creation and in new firm creation over the last decade. During this period, Brooklyn added 50,000 jobs while the while New York City as a whole lost 16,000. The borough added not only hundreds of restaurants and retail shops but also health care, business and professional service companies.

 

September 22, 2011.  NYC Labor Market Challenges Facing Older Workers. FPI's James A. Parrott delivered testimony before the New York City Council Committee on Aging detailing the following points: Unemployment for older workers has continued to increase during the past year and a half, despite the recovery. And many older workers who are still employed have seen their hours, and their weekly pay, reduced. For New York City workers ages 55-64, both unemployment and under-employment are sharply higher now than before the recession began, and higher than at the "trough" of the recession: unemployment rose from 6.0 percent at the end of 2009 to 6.4 percent for the first half of 2011, underemployment rose from 10.3 percent to 12.5 percent, and the employment rate declined from 60.1 to 58.7 percent. For workers 65 and over, unemployment rose from a very low 2.8 percent to 4.1 percent, and the employment rate fell by a percentage point.

 

September 18, 2011.  Budget Busters. A letter by James Parrott, New York Post.

 

September 14, 2011.  Can Obama's Plan Erase New York's Jobs Deficit? By James Parrott, FPI's deputy director and chief economist, who writes regularly for Gotham Gazette's Economy section.

 

August 31, 2011.  One in seven New Yorkers out of work two years into "recovery." FPI's 2011 annual edition of the State of Working New York documents New York's continuing unemployment crisis in the context of the weak national economic recovery. Two years into the "recovery" from the Great Recession of 2008-2009, one in seven New York workers is unemployed, under-employed or has given up looking for work - a total of 1.4 million New Yorkers. Long-term unemployment is at record levels. Half of the unemployed have been out of work for more than six months, and 29 percent have been jobless for a year or more. Press release and report >>

 

July 20, 2011.  Scant recovery for workers in NYC: Young workers see gains, but unemployment worsens for older workers. This report, the latest on "The State of Working NYC," finds several crosscurrents in the first year after the job market bottomed out in NYC. Young workers (ages 16-21 and 22-27) gained in the recovery, contrary to the national trend of decreasing employment rates for these age groups. Unfortunately, older workers too bucked the trend: nationally they made small gains, but in NYC they fared worst of all age groups. While NYC's job growth outpaced the nation's early in the recovery, in recent months the city's job growth has slowed and now lags the nation. Two years after the national recession officially ended, New York still faces soberingly high unemployment and fundamental economic and job market challenges. Press release >> Report >>

 

July 5, 2011.  Comments on USDA's proposed Supplemental Nutrition Assistance Program (SNAP) regulations implementing the eligibility, certification and employment and training provisions of the 2008 Farm Bill. In general, USDA's overall approach to the Food, Conservation and Energy Act (FCEA) provisions is laudable. However, these comments outline several important changes should be made in the final regulations. Without these changes, the regulations would fall far short of what the legislation intended and would miss important opportunities to improve the program for the millions of Americans who rely upon its help to meet their basic food needs.

 

June 24, 2011.  Governor Cuomo's Fiscal Policies: How Will New York’s Economy Be Affected? Governor Cuomo won a great political victory in getting his 2011-2012 budget adopted on time and with very few changes. And it now looks like the Legislature will be enacting - again with very few changes - the very tight cap on property tax levies that the Governor spelled out during his 2010 campaign. This brief examines how the New York economy fared, compared to other states, under the more balanced fiscal policies of recent years. But dramatic cuts in spending can easily derail fragile recoveries; it remains to be seen whether the state will do as well under Governor Cuomo's direction.

 

June 22, 2011.  Proposed New York property tax cap is much more restrictive than the Massachusetts cap after which it is supposedly modeled. No lawmaker or taxpayer should be one bit reassured by the Massachusetts experience with a tax cap. New analysis from FPI's Frank Mauro shows what a New York-style tax cap would mean if it had been in effect in Massachusetts over the last decades. Property tax revenues would be less than half what they are today, with devastating implications for the entire array of locally-funded public services.

 

June 22, 2011.  Brooklyn Labor Market Review - Spring 2011. Prepared by FPI  for the Brooklyn Chamber of Commerce, the latest issue of the BLMR looks at immigrant entrepreneurs in Brooklyn by sector. The report finds that there are nearly 14,500 Brooklyn immigrant small businesses across a range of sectors from construction to restaurants, grocery stores, child care services and doctors' offices.

 

June 20, 2011.  Budget Cuts Could Strangle Sputtering Recovery. By James Parrott, FPI's deputy director and chief economist, who writes regularly for Gotham Gazette's Economy section.

 

June 15, 2011.  Proposed Cap Does Not Address New York's Property Tax "Problem." A deeper look at the data used to support the proposed cap shows that New York’s real tax problem is that hundreds of thousands of low, moderate and middle income families are already paying inordinate shares of their income in property taxes on their primary residences. Only a middle-class Circuit Breaker can provide effective relief for these families in a targeted and cost-efficient manner. Analysis >> Omnibus Consortium release >>

 

June 10, 2011.  Incorrect diagnosis of New York's property tax "problem" will lead to a remedy that is likely to do more harm than good. Massachusetts' experience with Proposition 2 1/2 does not support the claim that a cap of the type proposed by Governor Cuomo is workable let alone desirable. If a hard cap of the lesser of 2 percent or the rate of inflation, with no overrides, had been in effect in Massachusetts since 1981-82, that state's property tax revenue would be about 60 percent less than it currently is. The Governor's proposed cap would undermine the quality of the entire array of locally funded public services while providing very little relief to those homeowners who are most overburdened by real property taxes. New York can learn from the Massachusetts experience but not if it ignores the reality of that experience. Analysis >>

 

June 6, 2011.  Testimony at the New York City Council Committee on Finance Hearing on the FY 2012 Executive Budget. FPI's James A. Parrott delivered testimony detailing the following points: Against the backdrop of an outlook for a very gradual and drawn-out recovery during which unemployment and economic adversity remain elevated, the Mayor's Executive Budget proposal contains several harmful budget cuts that will curtail vital services in many critical areas. The City needs a more balanced approach to closing large budget gaps; this approach should reduce outlays on contracting out and find ways to enhance revenues.

 

May 23, 2011.  New York City Revenue and Cost Savings Options. This one-pager makes the case that NYC should reform its Personal Income Tax (PIT) structure to add brackets to the top and to take low-income households off the income tax rolls. Four more revenue options and three cost-cutting measures are also proposed.

 

May 12, 2011.  An Assessment of Methods and Findings of the New York City Economic Development Corporation's Living Wage Study. A joint effort of National Employment Law Project, FPI, and Good Jobs New York, this is an initial assessment of the executive summary of the study released May 9, The Economic Impact on New York City of Proposed Living Wage Mandate: Key Findings. The assessment finds that even the limited explanation presented in the executive summary reveals a series of fundamental errors in methodology and analysis. In particular, both real estate market impacts and labor market impacts are improperly assessed, rendering the study an inaccurate and unreliable guide for policymakers. Press release >>  Brief >>

 

May 11, 2011.  Wrenching Choices for New York City's Working Families: Child Care Funding Slashed as Need Grows. Right now, the need for subsidized child care among low-income families is five times as great as what the city funds. The Executive Budget will cut child care funding considerably below the annual average level for 2008-2010, and further shifts $13 million in costs to low-income families in the form of co-pays. This brief details the impact on working families and child care providers - noting that single parents, whose households include 60 percent of the children in low-income families, will be in an especially precarious position.

 

May 9, 2011.  Issue Spotlight: Pensions. Frank Mauro was part of a forum on public sector pensions. The Capitol.

 

May 5, 2011.  Top ten reasons a living wage makes sense for New York City. Among the reasons to support an expanded living wage: the rising educational attainment yet falling real wages of New York City’s low-wage workers, and a sharp rise over the past two decades in the number of working poor. The City Council will hold a hearing on May 12 on legislation to extend the city’s living wage law to cover large subsidized economic development projects. Press release >> Brief >>

 

April 12, 2011.  SNAP Benefits in Paul Ryan's Budget Plan: The Impact on New York's Counties. A new report from the Center on Budget and Policy Priorities (CBPP) points out that House Budget Committee Chairman Paul Ryan's budget plan would cut the SNAP program (formerly known as food stamps) by $127 billion - almost 20 percent - over the next ten years (2012-2021), $8.78 billion in New York alone. FPI has estimated the impact on New York City and each of the counties outside New York City.

 

March 25, 2011.  New York State's economic rebound is leading the nation. New data from the U.S. Commerce Department's Bureau of Economic Analysis show that New York State led all states in 2010 in the growth in net earnings. New York grew fastest and second fastest in terms of net earnings and personal income respectively, well ahead of the national averages. The brief is part of the Numbers that Count series, in which FPI presents and analyzes new data on New York's economy.

 

March 23, 2011.  A Harder Struggle, Fewer Opportunities: The Impact of the Governor's Proposed Budget on Women, Children and Families. This report prepared for The New York Women's Foundation shows that the Executive Budget takes away from an array of vital programs that strengthen women's ability to support themselves and their families, and keep them healthy and safe. Obstacles are placed in the paths of women trying to improve their lives and those of their children. The proposed assembly and senate budgets move in the right direction by moderating some of the proposed spending reductions. The leaders should further moderate cuts while considering revenue actions to lessen the disproportionate reliance on spending cuts.

 

March 8, 2011.  An Overview of Job Quality and Discretionary Economic Development Subsidies in New York City. A brief from FPI, Good Jobs New York and the National Employment Law Project examines the low wages typically paid for many of the permanent jobs at city-subsidized economic development projects such as Bronx Gateway Mall, Fresh Direct and Yankee Stadium. An update of analysis originally conducted last May, the study finds that significant numbers of low-wage jobs are being created with New York City tax dollars, jobs for which starting pay is as low as the minimum wage and for which annual earnings often do not even break the $20,000 mark. Press release >> Full report >>

 

March 2, 2011.  Briefing on Mayor Bloomberg's Preliminary FY 2012 New York City Budget. Despite Wall Street's rebound, unemployment and hardship continue; at best, recovery will be very gradual. The revenue rebound does not make up for declining federal and state aid, particularly in education. Human services are being cut, while recent tax changes worsen the regressivity of the City's tax structure. The City should begin to address several tax inequities and strengthen its revenue base.

 

March 1, 2011.  Short Term Property Tax Relief and Long Term Tax Reform: An Omnibus Approach. Testimony of FPI's Frank Mauro at the  public hearing "Cap on Real Property Taxes" before the Assembly Standing Committees on Ways and Means, Education, Real Property Taxation, Local Government and Cities. A cap on real property taxes would not effectively protect those most in need of property tax relief, and would exacerbate inequities in our current system of public school finance. In the short run. a property tax circuit breaker provides effective and targeted relief. Over time, we should reform New York's state-local tax system by having the state gradually take responsibility for the financing of a greater share of the essential services that New York State performs through its local governments.

 

February 24, 2011.  Cuomo's austerity budget will kill N.Y. jobs: Why not tax the top 5% instead of slashing services? An op ed by Frank Mauro and James Parrott, New York Daily News.

 

February 16, 2011.  Testimony at the Joint Legislative Public Hearing on the 2011-2012 Executive Budget Proposal - Human Services. Submitted by Carolyn Boldiston, FPI's Senior Fiscal Policy Analyst. Includes: a review of New York State's recent public assistance caseload history, a review of New York's historical utilization of the federal Temporary Assistance for Needy Families (TANF) block grant, a review of the impact of the American Recovery and Reinvestment Act (ARRA) of February 2009 on TANF funding and spending in New York State, and recommendations for the 2011-2012 state fiscal year.

 

February 14, 2011. Balancing the New York State Budget 2011-2012. This presentation - by Frank Mauro of the Fiscal Policy Institute and Ron Deutsch of New Yorkers for Fiscal Fairness - was made at a budget briefing for legislators, staff and advocates. The briefing was sponsored by Growing Together NY, Strong Economy for All Coalition, AFL-CIO, AFSCME NY, ATU, CSEA, CWA District 1, NYSUT, PEF, SEIU Local 32BJ, TWU, and UFT.

 

February 14, 2011.  FPI responds to the Partnership report: Can New York Depend on a "Millionaire’s Tax" to Solve the Budget Crisis? The personal income tax (PIT) surcharge should be continued. It is not onerous, and it is offset by federal tax cuts. Moreover, unemployment is projected to stay above 7 percent until 2014; budget cuts worsen unemployment and the adversity experienced by many families in a weak economy. New York needs a balanced approach to balancing the budget, one that looks also at the revenue side, rather than relying too heavily on the cutting side. (This is a revised version of a brief originally published on February 10, 2010.)

 

February 8, 2011.  New York State's Economic and Fiscal Outlook for 2011-2012. The Fiscal Policy Institute's 21st annual budget briefing.

 

February 7, 2011.  Make Wall Street Pay. By James Parrott, New York Times. Part of "Room for Debate" - Will City Pensions Be Cut?

 

February 1, 2011.  Statement from the Fiscal Policy Institute on the proposed Executive Budget 2011-2012. The budget proposed today by the Governor places relies excessively on spending cuts, which increase unemployment and intensify hardships for those bearing the brunt of the recession. Meanwhile, a privileged group has profited tremendously from New York's economic growth over the past two decades, and from Wall Street's recent resurgence; the richest one percent of New Yorkers now receive 35 percent of all income in the state, while they pay a lower state and local tax burden than middle- and low-income state residents. Budget austerity will not put New Yorkers back to work.

 

February 1, 2011.  Who's Fudging What? A response to an editorial in the New York Post, which argued that New York's extreme income polarization is not a problem.

 

January 20, 2011. What do the new Census population numbers tell us about New York's economy? This data brief, a response to claims that the Census figures depict New York's economic decline, considers the Census population numbers in relation to other measures of New York State's relative economic performance over the past decade. The brief is first in a series presenting and analyzing new data on New York's economy.

 

January 18, 2011.  As Incomes Gap Widens, New York Grows Apart. By James Parrott, FPI's deputy director and chief economist, who writes regularly for Gotham Gazette's Economy section.

 

January 14, 2011.  Wall St. Wealthy Must Do Part: Budget Cuts Alone Won't Solve State's Problems. By James Parrott, The Chief-Leader.

 

January 10, 2011.  Brooklyn Labor Market Review. This study commissioned by the Brooklyn Chamber of Commerce shows that the borough was a leader citywide in job creation despite the ongoing recession. The diversity of Brooklyn's economy coupled with growth in healthcare, retail, food service, professional services and administrative sectors helped the borough remain stable in 2009 and gain jobs in 2010. Employment growth surpassed projections.

 

January 3, 2011.  Fiscal Reality: Practical options for New York's budget. An op ed by James Parrott, The Clarion. A balanced approach to balancing the state budget includes identifying additional revenues - not just cutting critical services - particularly at a time when need has been elevated by the lingering recession. Government spending is inextricably tied to prospects for economic recovery. Steep cuts will worsen unemployment.

 

January 2, 2011.  Across the state, socioeconomic disparities need to be reduced. An op ed by Frank Mauro, Albany Times Union. A measurable goal - say, "New York state should dramatically reduce the number of communities in the state that have child poverty rates in excess of 15 percent" - could effectively focus New York state's policies in a wide variety of areas, from economic development to the organization and financing of basic municipal services. Upstate New York cannot be economically dynamic unless its metropolitan areas are too; the upstate metropolitan areas cannot be economically vibrant if their central cities are allowed to languish.

 

For earlier FPI publications, please see the archives.