New York consumers are bummed out by the high cost of gas and food, according to the most recent consumer confidence poll conducted by Siena College Research Institute. Matt Daneman reports at the Democrat and Chronicle that confidence dropped about 3 points between March and April:
Despite that growing pessimism, shoppers haven't yet curtailed their spending. According to Siena figures, buying plans for computers, motor vehicles and furniture were up slightly, while intentions to buy homes or make major home improvements were down slightly. The past couple of years have been particularly volatile for the Siena index, with numbers often bouncing from month to month, [Siena researcher Douglas] Lonnstrom said. It's only when a several-months trend sets in, either up or down, that consumer spending on big-ticket items follows, he said.
Gas prices
Republican leaders in Albany are still calling for a "gas holiday" over Memorial Day, Independence Day and Labor Day weekends, reports Jacob Fischler at Gannet:
The state generated $516.1 million in tax revenue from motor fuels in fiscal year 2010-11, according to the state Department of Taxation and Finance. “We don’t have a revenue problem,” said Assemblyman James Tedisco, R-Schenectady, Saratoga County, citing Gov. Andrew Cuomo’s ability to balance the budget without raising taxes. “We have a spending and taxing problem in New York state.” Tedisco and Sen. Greg Ball, R-Carmel, Putnam County, are pushing for the tax suspension. The measure is before the Senate Committee on Investigations and Government Operations today. Tedisco said there could be a trickle-down effect from the tax suspension, notably in state tourism.
Meanwhile, Eric Jaffe at Infrastructurist points us to some helpful charts at The Atlantic that show you how the price at the pump actually gets made. For example, in March of 2011, 68 percent of the price at the pump was attributable to crude prices - and 12 percent came from taxes.
Upstate economy
The governor had some tough talk about the economy in upstate at a fundraiser last night, reports Joseph Spector at Albany Watch:
The first-year governor said his administration will work on economic development and lower taxes and regulations that are an impediment to upstate’s revival. “I’m sick and tired of hearing too much talk in upstate New York about the old days, and the companies that we had, and the businesses that we had and not enough talk about tomorrow and the future, and the businesses that are coming, and the jobs that are coming, and the opportunities that are coming,” Cuomo said in one of the first stump-type speeches he’s given since being elected and perhaps the first one to kick off Cuomo 2014. “I’m sick and tired of seeing too many young people go to airports to get on a plane to find their future somewhere else because they don’t believe that there’s a future in upstate New York. I’m sick and tired of that, and that’s what’s going to change.”
To combat that sickness and tiredness, Cuomo pledged to lower taxes and trim troublesome regulations.
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