As chairman of The Business Council, let me thank you, The Business Council's members, for your efforts this year to make New York State a better state for business.
We can take some pride in our achievements. In the last year, New York has made progress in areas that are Business Council priorities.
Earlier this month, our lawmakers voted to eliminate the alternative minimum tax and adopt the single-sales factor for corporate income taxes [confirm]. These were top tax-reform priorities for us.
Albany also resisted pressure to add billions of dollars to our budget.
Pro-spending advocacy groups had urged New York to spend and spend. But we reminded Albany that past spending excesses created economic turmoil. To their credit, and with a display of strong leadership by Governor Pataki, lawmakers listened. And the final budget agreement includes much less additional spending than had been proposed.
There has been progress in other areas as well.
Last year, we sounded an early call for more power plants, better energy transmission systems, and an expedited plant-siting process. Today, many other advocates have joined us, and there is a growing momentum for addressing these energy needs.
And last year, The Business Council urged a significant, sustained state investment in R&D in high-tech areas in which New York has existing strengths. . . and in which there is considerable potential for economic dividends.
Governor Pataki, the Senate, and the Assembly all advanced similar proposals, and [insert reference to budget outcome.]
The Business Council can take satisfaction in this progress. What we cannot do is rest on our laurels.
Instead, we must help Albany resist pressure to undo this progress. And we must argue, persistently and persuasively, that still more improvements to our business climate are both possible and necessary.
The hue and cry for more spending will be especially loud in the months ahead. There's always pressure to spend more in an election year. And the nation's current economic uncertainty will only intensify that pressure.
That's why we can't let down our guard.
We must continue to urge Albany to reduce taxes in any way possible. Albany has done much to address this problem - and business is grateful. But New York's overall tax burden, and its property taxes in particular, remain far above the national average, and a major competitive obstacle for New York State.
We must also continue to support critical workers' compensation reforms - because total workers' comp costs in New York, although lower in recent years, remain far above the national average.
Since the mid-90s, New York's lawmakers have done much to make this a better state for business. With strong, creative, and positive support from The Business Council, it can do even more. . . . and it will do even more.