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State’s Population Loss Has Many Causes – But We Still Have No Solutions

It would be refreshing to read a population report with positive news for New York state.

We’d do backflips down the bike lanes on Washington Street if Republicans and Democrats could actually agree on measures to help slow down that population loss.

New York lost more than $14.1 billion in state-adjusted gross income over a two-year period as residents moved to New Jersey, Florida and other low-tax states, according to newly released Internal Revenue Service data. The data, based on income tax returns, shows New York lost more than 222,702 residents in the 2021 and 2022 calendar years driven by people moving to other states. New Jersey and Florida were the biggest beneficiaries of New York’s transplants. More than 88,344 people moved from New York to Florida, taking $9.5 billion. Another 79,883 New Yorkers moved to neighboring New Jersey, bringing about $6 billion in income with them. New Yorkers also fled the state for Pennsylvania, Texas, North Carolina and Georgia, according to the data.

What’s the cause? Republicans, generally, say people are leaving because of the state’s tax burden and businesses struggling under excessive regulations. Gov. Kathy Hocul says lack of housing is the biggest culprit.

In our view both sides are likely right. Lack of affordable housing is a problem. So are high taxes and regulations that make it difficult for businesses to grow without exorbitant government handouts – that are paid for in part by our high taxes. Both are problems.

This is more than an esoteric debate. People leaving the state comes with financial consequences – roughly $7 billion in lost revenue from local economies according to the IRS. And until lawmakers view the losses of people and their money as a major issue that will eventually cripple New York state, there will be no impetus to change anything to make New York attractive to the hundreds of thousands of people leaving the state.

Albany is too busy arguing over the cause to even get to arguments over a solution. The backflips will have to wait.

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