New York faces population decline and economic challenges: DiNapoli and Business Council leader voice major concerns

State Comptroller Thomas P. DiNapoli and Heather Briccetti Mulligan, President and CEO of the Business Council of New York State, have voiced concerns over New York’s dwindling population and its implications on the state’s economy and tax base. An op-ed published by the New York Daily News on March 8, 2024, highlighted that the state lost over 533,000 residents between July 2020 and July 2023, with the population continuing to shrink by more than 101,000 people from 2022 to 2023. This decline is directly impacting the state’s tax revenues, with significant losses among Personal Income Tax filers, particularly among high-income earners who contribute disproportionately to the state’s tax liabilities.

The op-ed also addresses the broader economic impacts of this population loss, noting the particular strain on New York’s finance and insurance sector, which plays a crucial role in the state’s economy. Despite the industry’s high average earnings and significant contribution to the state’s gross domestic product, job growth in New York has lagged behind the national average. The Business Council’s report suggests that factors such as infrastructure, workforce, and business climate, along with high individual income taxes and housing costs, may be making New York less attractive to businesses and residents alike.

DiNapoli and Briccetti Mulligan call for legislative action to make New York more appealing to both people and employers. They emphasize the importance of spending restraint and reducing the burden on job creators to enhance the state’s economic outlook and quality of life. The duo urges New York to build on its commitment to success by creating an environment where residents want to stay, work, and raise their families, countering the factors that drive people to leave the state.