Groundbreaking Report by Partnership for New York City & GLG (Gerson Lehrman Group) Shows Accelerated Trends toward Downsizing and Relocation of Banking & Insurance Jobs to Cheaper, Lower Taxed Jurisdictions
NYC Saw a Net Loss of 50,000 Financial Services Jobs From 2000-2013; Middle Class Jobs are Hardest Hit
New York Times Op-Ed By Partnership President & CEO Kathryn Wylde Details Importance of Wall Street to all New Yorkers
New York, New York – The Partnership for New York City today released the first comprehensive report on New York’s financial services industry since the 2008 financial crisis. The report is based on a survey of a broad cross section of the industry, prepared by the Partnership with GLG (Gerson Lehrman Group). It details industry status and trends in terms of its contributions to jobs, tax revenues and economic activity in New York City and suggests what will be needed to maintain the city’s position as the global financial capital. The full report can be found here.
The report, titled At Risk: New York’s Future as the World Financial Capital, concludes that New York City remains the headquarters of global finance. Among the largest employers, however, there is both global downsizing and a growing trend to move jobs and business operations out of New York City to lower cost, more business-friendly locations. Absent public actions to address high costs, high taxes, aging infrastructure and a hostile political and regulatory climate, the global institutions that directly or indirectly employ more than a million New Yorkers, mostly in mid-level jobs, will shrink its New York City presence, with serious consequences for the city’s economic and fiscal health.
“This bill is an example of ideology trumping practicality. There are many positions where employers must consider the background and criminal record of an applicant before offering a job. That is presumably why this legislation gives wide exemptions to city government. It should do the same for private sector employers. New York State already has a strong anti-discrimination law on the books to protect ex-offenders from unfair discrimination in the job market. A bill like this discourages employers and ends up resulting in fewer, not more, job opportunities for the people the City Council wants to help.”
Trade Is Critical To Local & State Economies; New Pacts Designed to Spur U.S. Job Growth
Business organizations from nine states, representing thousands of America’s leading employers, today announced a coordinated campaign to support passage of Trade Promotion Authority (TPA) legislation. The Senate passed the TPA legislation last month and now the House is poised to act. The legislation would authorize the President to negotiate new international trade agreements designed to benefit American business and workers.
Participating organizations include the California Business Roundtable, the Colorado Business Roundtable, Iowa Business Council, the Minnesota Business Partnership, the New England Council, the Oregon Business Council, the Pennsylvania Business Council and the Washington Roundtable. Together, the members of these organizations employ tens of millions Americans. Read More →
“Congratulations to Silverstein Properties and 21st Century Fox and News Corp on the announcement of their exciting plans to complete the redevelopment of the World Trade Center as a new international media and business hub.”
More than 60 members of the Partnership for New York City issued a letter to leaders of the State Senate and Assembly, urging them to support the Governor’s Parental Choice in Education Act. The Act makes $150 million in state tax credits available to parents and private donors who help offset the cost of tuition at non-public schools, to educators purchasing classroom materials, and to donors who contribute to educational improvement programs in public schools. The signatories, all of whom are CEOs of some of the city’s largest employers, said that the bill would lead to more school choice options for children of middle and lower income households.
“We should be opening as many educational doors as possible for our city’s children, and the Governor’s proposal will do just that. It will increase the number of school options for families – particularly lower- and middle-income households – by encouraging increased giving that will help cover tuition costs at non-public schools,” said Kathryn Wylde, President & CEO of the Partnership for New York City.
Signatories included: Philippe P. Dauman, President and CEO, Viacom Inc.; James P. Gorman, Chairman & CEO, Morgan Stanley; Rupert Murdoch, Chairman, 21st Century Fox; Kenneth I. Chenault, Chairman & CEO, American Express Company; Jerry I. Speyer, Chairman & Co-CEO, Tishman Speyer; Terry J. Lundgren, Chairman & CEO, Macy’s, Inc.; and Laurence D. Fink, Chairman & CEO, BlackRock, Inc.
The signatories said, “We view state incentives for a greater diversity of educational options and partnerships with local employers as having only positive benefits for our city and state as we seek to ensure New York has people with the talent and skills required to excel in an increasingly competitive global economy.”
“The approval of a public-private partnership to redevelop LaGuardia is welcome news for business travelers and tourists alike. Hopefully construction will proceed quickly and mark major progress toward achieving Governor Cuomo’s vision of a truly modern and attractive airport system connecting New York City to the world.”
Failure to Enact Extension of Mayoral Control Will Throw New York City’s Public Education System into Chaos
In a strong letter to leaders of the State Senate and Assembly, CEO members of the Partnership for New York City today urged legislative action to maintain mayoral control of the city school system – a governance system that expires in June – for at least three years. Failure to act would mean the city legally reverts to the old Board of Education and community school boards, which presided over the deterioration of public education in the five boroughs. The letter, which was signed by 72 CEOs, said, “Failure to enact this extension before the end of June will throw New York City’s public education system into chaos. There is no justification for exposing more than a million students to the turmoil that would result from the expiration of a system that has served our city well for thirteen years.”
Mayoral control of city schools was implemented in 2002 with the help and support of the Partnership for New York City. It replaced a dysfunctional and highly politicized system of central and community school boards with a governance system that holds the Mayor accountable for running the city schools. The Assembly recently passed a three-year extension of mayoral control and the State Senate introduced a bill on Tuesday to extend mayoral control for one year.
“Maintaining mayoral control of city schools is critical to students, parents and employers who all depend on high quality public schools,” said Kathryn Wylde, President & CEO of the Partnership for New York City. “Mayoral control has created a better, more transparent governance system than existed in the past – attendance has improved, graduation rates are up, and students are performing better on tests. The results clearly demonstrate that mayoral control is working and should be continued.”
The signatories also pledged their support for expanding the number of charter schools that can be established in New York State.
Signatories of the letter included: Philippe P. Dauman, President and CEO, Viacom Inc.; James P. Gorman, Chairman & CEO, Morgan Stanley; Jamie Dimon, Chairman & CEO, JPMorgan Chase & Co.; Kenneth I. Chenault, Chairman & CEO, American Express Company; Jerry I. Speyer, Chairman & Co-CEO, Tishman Speyer; Terry J. Lundgren, Chairman & CEO, Macy’s, Inc.; Laurence D. Fink, Chairman & CEO, BlackRock, Inc.; and Kevin P. Ryan, Chairman & Founder, Gilt.
“The Commercial Rent Tax is a tax on job creators that should be eliminated. Reducing the tax for businesses that pay less than $500,000 in annual rent, while increasing it for those that pay rents in excess of $3 million, as proposed in a bill authored by City Council members Dan Garodnick and Helen Rosenthal, results in a perverse incentive for Manhattan employers to stay small. A better approach would be to phase out the tax in a manner that favors job creation. Under the bill introduced today, a small investment firm that occupies less than 2,500 square feet in Manhattan and has a half dozen employees would get a substantial tax reduction, while a retailer that employs hundreds of New Yorkers would see a tax increase. The Council members who propose the tax increase consider it inconsequential, but taxpayers react very differently. If enacted, this bill suggests that the city will raise business taxes regardless of whether they need the money – which currently they do not – and that will have a chilling effect on job growth.”
“The Senate’s vote to advance the President’s trade agenda is a major victory for New York, which stands to benefit greatly from expanded global trade activity. Already 25% of merchandise exports from the New York City metropolitan region are purchased by consumers in countries included in the Trans-Pacific Partnership, and clearing the path for new international trade agreements should result in an increase in exports, jobs and economic activity. New York’s representatives in the House should follow the Senate’s lead and pass this bill without delay.”
In May, nearly 100 members of the Partnership for New York City, an organization made up of New York City’s top business leaders, issued a letter to the entire New York State Congressional delegation pressing for support of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA). TPA gives the President the authority he needs to secure the advantages that trade initiatives will bring to American business and workers. Signatories included: Lloyd C. Blankfein, Chairman & CEO, Goldman Sachs & Co.; Kenneth I. Chenault, Chairman & CEO, American Express Company; Philippe P. Dauman, President and CEO, Viacom Inc.; James Dimon, Chairman & CEO, JPMorgan Chase & Co.; James P. Gorman, Chairman & CEO, Morgan Stanley; and K. Rupert Murdoch, Chairman, 21st Century Fox.