New York CEOs want Governor Hochul to tackle taxes and crime
A group representing some of Wall Street’s biggest titans said Governor Kathy Hochul has her work cut out over the next four years after her election victory. The state still faces challenges retaining and attracting businesses after the pandemic.
Partnership for New York President and CEO Kathryn Wylde, whose organization’s executive committee includes JP Morgan’s Jamie Dimon and BlackRock’s Larry Fink, spoke with FOX Business about the group’s wishlist as Hochul begins his first full term at the helm and the Governor of New York faces obstacles in achieving them.
Following Hochul’s victory over Republican challenger Lee Zeldin this week, Wylde released a statement regarding PNYC’s priorities while expressing confidence in the governor’s willingness and ability to meet them.
“The city’s business community looks forward to working with Governor-elect Kathy Hochul to maintain a strong economy and create a more competitive climate to develop and attract talent and create jobs in New York State,” said Wylde’s press release.
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“The next four years will involve fiscal challenges, while requiring additional state investments in affordable housing, expanding mental health services and training the workforce,” she said. added. “It will require tough decisions from the governor, who is definitely up to it.”
Wylde told FOX Business that New York City’s economy has been able to thrive in recent years thanks to record profits fueling strong tax collections and federal pandemic relief bolstering budgets like the system. city metro.
But times have changed.
“The No. 1 issue will be fiscal stability for the city and state as we enter a period of inflation and market volatility – or [what’s happening] in Ukraine, etc. – led to the fall of Wall Street markets in 2022,” says Wylde.
She explained that not only are Wall Street profits down, but commercial real estate has lost over $400 billion and has a 20% vacancy rate. Thus, income tax revenues and property tax revenues for the next two years will be significantly lower than budgets require.
Given these issues, Wylde says the question is whether state and local leaders will have the discipline to rein in spending.
“Particularly at the state level, where the legislature is eager to spend money that we don’t have, the governor is going to be able to try to manage spending expectations that we may not be able to. afford without a tax increase,” she says. “And we think a tax hike will drive business and talent out of town.”
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Crime also drives talent out of a city.
The New York City Police Department is doing its job on the front lines with high arrest rates while prosecutions and convictions are low, Wylde says. The courts are under state jurisdiction and prosecutions are subject to state law.
The PNYC sees mental health as a way to address crime issues in New York City, as it lacks facilities to treat people who need services. Many potential patients end up on the streets due to a lack of laws and procedures to keep people in treatment facilities when they need them.
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Wylde says another major problem contributing to crime in the city is illegal firearms and thanks Hochul and New York City Mayor Eric Adams for doing a good job on that front.
But “what most people who use the subway are most afraid of isn’t guns,” she added, “it’s being pushed in front of a subway by someone who suffers from mental illness”.