Friday, April 10, 2015

Inside New York State's Long Decline

William Tucker has a history lesson for you on New York state's long decline:
New York was the most populous state in the union in 1960, with 45 representatives in Congress. By 2012, New York fell to third place and its congressional delegation plummeted to 28. The 2020 Census will likely cost New York even more congressional seats. Without the hundreds of thousands of immigrants moving into New York City, the state’s depopulation would be even greater. A remarkable 36 percent of New York City is foreign born — twice the percentage in 1970.
There's more:
The economic woes of the Empire State trace back to Albany, and a state government that is legendary for its ability to tax and spend. Strict election laws insulate incumbents of both parties, making the state legislature the longest-tenured in the nation. Petitions to put insurgent candidates on the ballot require tens of thousands of signatures and are regularly rebuffed by the courts on technical grounds. Ballot initiatives that have led to tax reform in other states are not permitted. Politicians are protected from voters and have built a spending machine unmatched in virtually any other state. New York, despite its shrinking population, spends more money than all but a handful of states.

The primary example is Medicaid. New York is the only state that forces its cities and counties to help finance Medicaid. As a result, for every dollar appropriated by Albany, Washington contributes two — and New York’s local governments must kick in a fourth.

“New York spends $53 billion to serve 5.6 million people, which is twice the national average,” finds a 2012 report from the New York State Department of Health. That is $9,800 per recipient in a state where 40 percent of the population under 65 is on Medicaid. Meanwhile, California, with double the population, spends only $47 billion while serving 11.5 million people. That is $4,100 per recipient — less than half the New York rate.

Even so, New York’s Health Department admits that California’s Medicaid program, Medi-Cal, provides far superior service.


Taxes have consequences.