My old hometown, Buffalo, is bleeding people. The latest study published yesterday shows that upstate New York, and in particular Buffalo, is loosing people like crazy (See: Employers may have tough time replacing retiring boomers)
The reasons, as I see it, are threefold: taxes, lack of jobs, the public dole.
Donn Esmonde of the Buffalo News has been doing opinion pieces on these issues for some time. Today’s article: A few words from the expatriates places the blame pretty squarely where it lies. Check it out.
Now the only point of departure I would have with Mr. Esmonde is his constant harping on public employees. The public employees’ pay and benefits are generous in certain ways, but still lag behind the private sector, especially at the executive and managerial level.
When Erie County shut off all but basic safety and health services as a result of its budget crisis, Mr. Esmonde and others in the community were the first to decry the lack of services they were used to. Someone has to perform the services. You have to pay for what you get, although at the entry and journeyman levels of public employment pay and benefits far surpass the private sector. Public employees are not the problem —“ they are actually smart enough to go where the money and security are. It is rather their handlers (the unions) and the laws and policies that perpetuate the status quo.
I wish someone would be truthful in breaking out where the money goes. New Yorkers are taxed like crazy, the highest taxes in the nation. This certainly keeps jobs and people away. No one will bring their company to New York State so they can be taxed at far higher rates. It’s counterintuitive.
The CATO Institute does a good job of making policy recommendations to cut the biggest money wasters in New York. In Cleaning Up New York State’s Budget Mess, CATO points out that a luxury Medicaid program accounts for over 28% of the State’s budget. That coupled with disproportionate increases in education funding, debt service, welfare, and other ‘luxury’ programs, and further coupled with a needed restructuring in the State public employee workforce drive our taxes through the roof.
My recommendation is to cut and restructure, to think outside the box. How do we do what’s necessary in a leaner and smarter way?
- Dump the luxuries —“ people can do better on their own —“ keeping their own money.
- Pass Right to Work laws to cut the legs off powerful unions that are no longer necessary and are actually counterproductive.
- Maintain systems of public support for the poor and needy that are consistent with other states (it will eliminate benefit shopping) and that assure care for those who are most in need.
- Reform the insurance industry and litigation processes in New York driving down workers compensation, general business, and automobile insurance costs.
- Reform the State workforce and focus on a lean professional/para-professional team that is hard working and effective (do we still need file clerks and clerk typists?).
- Reform the Assembly and Senate into a once every two years citizens body eliminating the ‘professional politician’.
- Make sure that these reforms take place at every level of government.
New York has natural resources, an educated populace, and varied beauty that makes it a top notch place to live, work, and play. Now all we need is courage and thinking leaders.
By the way, this is my 500th post to my blog —“ hurray for my insight 😉