NEW YORK CITY-As of Wednesday morning, New York State will haveelected its next governor and most likely chosen quite a few newlegislators to replace the incumbents. Among the challengesconfronting the lawmakers when they convene in January will be aprojected $9-billion budget deficit for fiscal 2012 and the dubiousdistinction of presiding over a state that ranks last in the latestState Business Tax Climate Index.

The state has been bouncing along the bottom of the TaxFoundation’s index for at least the past five years, so its new lowcame as little surprise. (Second worst for a business-friendly taxclimate this year was California, while New Jersey actuallyimproved its standing somewhat; it had been in last place for threeconsecutive years.) In a statement issued last month, KennethAdams, president and CEO of the Business Council of New York State,called the ranking “another clear message that business as usualmust end in Albany.” And Steven Spinola, president of the RealEstate Board of New York, tells GlobeSt.com, “We in the State ofNew York tend to be number one when it comes to taxing.”

To help overcome that dead-last ranking and improve itscompetitive posture, REBNY is advocating attention to a number oftax areas. “The tax surcharge on high income earners runs through2011,” says Spinola. “So one of the important messages to thebusiness community is: will the State Legislature let that expire,or will they extend it and continue to send a negative message thatNew York is not very receptive to businesses and high incomeearners staying here?”