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New York Business
Climate Continues to Shine

The Empire State remains just that when it comes to economic growth. Its GSP of $651.7 billion annually ranks it behind only California. And in 1999 the state ranked No. 5 on SS's list of states claiming the most new and expanding industrial projects. For a mature economy in the busy Northeast corridor, that's saying something.

New York Gov. George Pataki is most proud of the way he and legislators have slashed taxes, many of them business-related. Indeed, taxes are being cut by more than $6.8 billion over the next five years. Thus, the state is heavily promoting its "new attitudes, new opportunities" for business expansion, which includes a drastic reduction in the kind of red tape that business has had to face in New York in the past.

New and expanding projects are popping up across the state, and they often are not in the immediate orbit of New York City. Such communities as Albany, Rochester and Syracuse have claims on significant high-tech companies.

"There have been very significant economic development initiatives in the last year," says Charles Gargano, chairman of the Empire State Development. "The competition among the states to attract and retain industry is very strong. In the past, New York lost industry to neighboring states, but that's no longer true."

One key initiative is the restructuring of the state's Economic Development Zones, now known as Empire Zones, and a new, more liberal series of tax credits and exemptions. New York feels its revitalized Empire Zones are fully competitive with similar programs in Michigan and Pennsylvania.