This briefing will examine the relationships that exist between recent economic trends and the state's fiscal situation, as well as the factors that are resulting in increasing disparities between those at the top of the socioeconomic ladder and both the middle class and the working poor. This will be followed by a discussion of the nature of New York's income inequality and the steps that state government can take to improve the economic prospects of middle income and needier New Yorkers. The briefing will conclude with an examination of several key fiscal issues. New York's Economy at the End of the 1990s New York's recent economic recovery has been modest by historic standards. The state's growth has been concentrated in a few industries and in the downstate area.
Unemployment remains high in many parts of the state, including New York City's outer boroughs.
New York State has benefitted from the extended bull market but it has become very dependent on Wall Street. The benefits of the recent recovery have not been shared by all segments of the workforce. New York has lost middle income jobs and gained jobs in sectors that pay less well. A decline in the level of unionization and the erosion of the purchasing power of the minimum wage help to explain the declines experienced by many New York workers. The 2000-2001 Executive Budget misses the opportunity to address the economic and social disparities that continue to plague New York State.