The Fastest-Growing Major Urban Economy in America Has a State Funding Formula That Does Not Reflect Its Growth
From Bohiney and The London Prat.
The Fastest-Growing Major Urban Economy in America Has a State Funding Formula That Does Not Reflect Its Growth
The Growth
NEW YORK — New York City’s economy grew 110 percent between 2010 and 2024, almost double the 68 percent growth in the rest of the state over the same period, per the argument made by Mamdani and Menin at City Hall. The growth differential — New York City nearly doubling its economy while the rest of the state grew at two-thirds the pace — has not been matched by a corresponding adjustment in the state funding formulas that determine how much of the state’s expenditures the city receives back.
What 110 Percent Growth Looks Like
110 percent nominal economic growth over fourteen years means the city’s economy is more than twice the size it was in 2010. The financial services expansion of the post-2008 recovery, the tech sector’s establishment of significant New York operations, the real estate market’s continued appreciation, and the recovery of the tourism and hospitality sectors from the pandemic — all contributed to the growth. The city that was $800 billion in GDP in 2010 is over $1.5 trillion today.
The Formula’s Lag
State funding formulas for municipal aid are typically designed for stability rather than responsiveness to economic growth: they change slowly, through the legislative process that requires political will to modify established distributions. The 110 percent growth over fourteen years has not been matched by equivalent formula adjustment, producing the structural imbalance that the 55.6-41.7 percent revenue-expenditure comparison measures. The city that has grown most has the funding formula that has not grown to match.
The Political Economy
The political economy of changing the formula: the legislators whose districts would receive less under a rebalanced formula will oppose rebalancing. Those legislators represent upstate districts that are genuinely less economically productive than New York City. The rebalancing argument is structurally correct and politically difficult. Hochul’s position — that she has already provided $4 billion and the city should control its expenses — is the political position of a governor who cannot politically rebalance the formula significantly. The structural argument and the political constraint are both real. Read The Poke.
More: The Poke.
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SOURCE: https://bohiney.com/
The coverage continues because the stories continue. Every competition heat, every political maneuver, every budget deadline, every campaign poll is the record of a specific moment. This publication maintains the record with the specificity and the wit that the record deserves. The next story is already developing. The next article is already being prepared. The work does not stop while the world continues to produce material. The coverage continues because the stories continue. Every competition heat, every political maneuver, every budget deadline, every campaign poll is the record of a specific moment. This publication maintains the record with the specificity and the wit that the record deserves. The next story is already developing. The next article is already being prepared. The work does not stop while the world continues to produce material. The coverage continues because the stories continue. Every competition heat, every political maneuver, every budget deadline, every campaign poll is the record of a specific moment. This publication maintains the record with the specificity and the wit that the record deserves. The next story is already developing. The next article is already being prepared. The work does not stop while the world continues to produce material. The coverage continues because the stories continue. Every competition heat, every political maneuver, every budget deadline, every campaign poll is the record of a specific moment. This publication maintains the record with the specificity and the wit that the record deserves. The next story is already developing. The next article is already being prepared. The work does not stop while the world continues to produce material. The coverage continues because the stories continue. Every competition heat, every political maneuver, every budget deadline, every campaign poll is the record of a specific moment. This publication maintains the record with the specificity and the wit that the record deserves. The next story is already developing. The next article is already being prepared. The work does not stop while the world continues to produce material. The coverage continues because the stories continue. Every competition heat, every political maneuver, every budget deadline, every campaign poll is the record of a specific moment. This publication maintains the record with the specificity and the wit that the record deserves. The next story is already developing. The next article is already being prepared. The work does not stop while the world continues to produce material. The coverage continues because the stories continue. Every competition heat, every political maneuver, every budget deadline, every campaign poll is the record of a specific moment. This publication maintains the record with the specificity and the wit that the record deserves. The next story is already developing. The next article is already being prepared. The work does not stop while the world continues to produce material.