[Opinion] July 24, 2019 – Sitting through the issuer presentations at the J.P. Morgan Transportation and Utility Conference in New York City, one couldn’t help but notice the growing divide in narratives among large issuers in the North-East vs those located in the South of the United States.
Georgia was touting her Hartsfield-Jackson Atlanta airport – the world’s busiest – as a beacon of local economic growth. “We are not in the business of airports,” said John Selden, Airport General Manager. “We are in the business of providing vital infrastructure to help Fortune 500 companies do business in Atlanta“.
“Imagine Atlanta being the center of cargo delivery throughout the country!” must have been music to the ears of bond holders comfortably seated at J.P. Morgan’s plush conference area in midtown Manhattan.
In Louisiana, Secretary Shawn Wilson at the Louisiana Department of Transportation and Development, was touting development projects that seemed to span the state. The cost of projects seems modest compared to what we New Yorkers are used to – $15 million for a large bridge? The quantum seems closer to the one-year retainer for a consultant advising large New York agencies.
Ditto with Texas, whose Water Board President was absolutely ebullient in describing the water infrastructure challenges faced by different regions in the state – regions which incidentally are BRIMMING with economic.
And then the New York Metropolitan Transportation Authority (MTA) presented. There is no doubt the state’s economy is still one of the most resilient and powerful in the nation. But the overall message is more nuanced: job cuts are looming, an external consultant’s report forecasts $500 million of annual savings assuming the disparate silos within the MTA can be consolidated. More question marks. More uncertainty. The tone is as somber as a mid-Autumn night as we are a day closer to winter.
As someone born and raised in New York, I am proud of the many achievements of the state. We are indeed “the first” in so many laudable achievements, particular in the area of civil rights and provision of a decent social safety net.
But the tiny cracks, accumulated over decades, have become visible wounds on the powerful beast that is the Empire State. After all, weren’t our politicians so full of hubris and pandery that they turned down 40,000 jobs and $30 billion in incremental tax revenues from Amazon?
It boggles the mind how leaders from the state most associated with finance could be so terrible at counting the bills and lining up future payments.
I will retire and die in New York. But my guess is my children will not. They will be in sunny Georgia, Louisiana or Texas – mobilizing businesses to help the local economy grow, paying fair taxes and not perpetually stuck in the grind of politically-correct politics dictating policy.
I will encourage them to visit. New York needs those precious sales taxes.
Contact Caren Moses at CMoses@BuyMuni.com
