♪♪
>> Funding for the
"Long Island Business Report"
has been provided by...
the JPB Foundation
and the Ford Foundation.
>> Hello, and thanks
for joining us.
I'm Jim Paymar with the
"Long Island Business Report."
Millennials on Long Island
are leaving the island
at an alarming rate.
One study indicates that
in the foreseeable future,
some 65% of Long Island
professionals age 22 to 35 are
projected to leave the island
for more affordable parts
of the country.
Can this trend be stopped
so Long Island doesn't suffer
a brain drain of its best
and brightest,
causing Long Island's
economy to falter?
As part of our ongoing reporting
initiative "Poverty and
Opportunity in America:
Chasing the Dream," we're
discussing the challenges
millennials face
to stay on the island.
Joining me to discuss this issue
is Dr. Martin Cantor,
director of the Long Island
Center for Socioeconomic Policy,
and Dylan and Ally McElroy,
young millennials
who live in Bohemia
in Suffolk County.
Martin, Dylan, and Ally, thank
you all for being with us today.
Appreciate it.
>> Great to be here.
>> Thanks for having us.
>> Marty, set the stage for us.
How serious is this millennial
flight, this brain drain of
young people from Long Island --
people who really
don't want to leave,
but they just can't afford
to stay here?
>> Well, it's a serious issue
if it's not addressed.
The big concern is 72% in our
survey said that they don't
think Long Island is going to be
able to attract the companies
where they wish to work,
and 68% said they can't find
jobs that meet their salary
expectations.
And those are very serious
issues to be met, and the island
is having a problem attracting
any companies outside
the region to come in here.
We haven't had a major,
major relocation in 50 years,
so how are we going to find
those companies that these folks
want to work in, like Amazon?
Amazon won't come here,
for a whole variety of reasons,
and those are the type of
companies the young millennials
would like to live in.
>> What about growing the small
businesses that already exist
here and making them larger
businesses if we can't attract
large businesses
from outside the region?
>> Well, the other side
is the old joke, "How do
you make a small business?
Well, you start out
with a large business
and run it into the ground."
The fact is, is that small
businesses can only go so far.
They're usually mom-and-pops.
They're not geared towards
the new technology.
They're not geared towards
reaching out and marketing.
The region itself is an issue.
Remember, when you get larger
and larger, employee costs go
up, energy costs go up,
taxes go up, so it's very --
And you have to export,
and export's not one of
the things we do well,
so it's rather difficult
to expect that.
>> But we did have
large companies like Grumman.
>> Absolutely.
>> And they were here for
a long time, and they
employed thousands of people
with great wages and --
>> One of the largest employers.
>> Yeah.
>> But in another survey that I
conducted for the Long Island
Forum for Technology,
the respondencies
of manufacturing companies,
the fence companies,
the higher-paying companies,
they had said to us two things
which were of concern.
30% of the companies said they
would relocate out of the region
because of high costs,
which, we're seeing the outflow
of businesses.
And 50% of the respondents said
that the industry would contract
in the next five years,
which it has.
So, unless you staunch that
outgo of economic activity where
the millennials want to work,
those companies
will not be here.
>> Now, Dylan, you're one of
the young millennials,
and your wife, Ally, as well,
and you're having
a hard time staying here.
You're born and raised
here, right?
>> Absolutely.
>> And you live in Bohemia.
And right now, you're living
in your parents'...
>> Yes. Basement.
Yes, yes, yes.
>> Which is not probably
what you'd like to be doing.
>> No.
I mean, luckily for us,
it's a very nice apartment.
It's spacious enough to have me,
my husband,
and both of our children,
but it's not, you know,
prime -- prime location for us
to want to be living
at the moment.
>> And, Dylan,
you went to St. John's.
You got a bachelor's degree.
You're working.
You've got a decent job.
You're going for your MBA.
You're kind of an
All-American kind of a guy,
you know, trying to raise
a family and do the right thing,
but it's a struggle.
How do you survive?
>> Well, it definitely
is a struggle.
We definitely fight every single
day to, you know, make sure we,
you know, advance our family
as best that we can.
Luckily, I was able to get
the job straight out of college,
so I didn't have to
struggle and search
like a lot of other people
that come straight out of
college with their bachelor's
on Long Island, or even across
the country nowadays.
I was able to get a job pretty
quickly, which is something
that helped us out a lot,
and being young and having
the two kids that we have
added to the struggle,
but, you know, luckily,
we've had our parents --
Not just, obviously, being able
to live in my in-laws' house,
but my parents being there
for a lot of support has been
what kind of has allowed us
to ease our way through
with the family transition,
our growing family,
and being able to actually
stay here for now.
>> Now, when we talked on
the phone, you told me
that a lot of your friends
have already left Long Island.
They just can't cut it.
>> Yes.
>> They just can't make enough
money.
The job opportunities
are not here.
Affordable housing is not here.
How significant is that
among your peer group?
>> I mean, it's extremely
significant.
I mean, we've had this
conversation with our --
with our friend groups.
You know, we have a very close,
tight-knit family, we call it,
and, you know, some of them
have already left.
Others have already communicated
that they probably want to
leave.
I have a friend -- We have
a friend who actually
owns a small business here on
Long Island in St. James,
and that's something that
he's been working for
his entire life to get to.
He's running it right now, and
luckily he is having success,
but even with the success
of his small business,
he's still struggling.
He lives at home.
>> I see.
Ally, you see any kind
of rectification?
Do you see any
good prospects out there?
I mean, right now you're raising
two little kids, so you --
>> Yes.
>> And you have a degree,
so you can't really...
If you went to work, you're
going to be paying more
for daycare and transportation.
>> Right. Exactly.
>> It doesn't make sense, right?
>> Exactly. Yeah.
It's definitely hard.
I feel like, you know, you do.
You just make enough to survive,
not to thrive.
So, if, you know, we -- If push
comes to shove, we had to leave,
we would, you know?
We would be with our friends
and -- and follow them
and try and have -- you know,
live in a place that we could
have enough to live comfortably.
>> Uh-huh.
>> We don't live comfortably.
>> Right.
>> You know, and granted,
we have the help of his parents
and my parents.
It's still -- It's not enough.
We don't want to be that burden.
You know, we never
want to be that burden.
>> And, Dylan, you told me that
you actually looked for a place,
and, I mean, it was like
1,500 bucks, and it wasn't much
bigger than this studio here.
>> Yeah. No, absolutely.
We toured the place.
It was in Bay Shore, and,
honestly, saying the studio is
about the same size is an
accurate description, honestly.
And the $1,500, you know,
as we talked about,
that was on the low end.
That was kind of that gentleman
doing us a little bit of a favor
because he knew
of our family situation.
At that time, we just had our
daughter, not our son just yet,
but he understood the growing
family, and he was helping us
out with the $1,500.
>> Uh-huh.
>> So, that was the low end.
A lot of other things that we've
looked at in the, you know,
either Suffolk or Nassau County
to rent a two-bedroom so that we
can have a bedroom for ourselves
and the kids, you know, it's
a lot more than that -- $1,800,
$2,000, a lot more than that.
>> Marty, the brain drain --
I mean, Long Island cannot
afford to put kids through
elementary school, middle
school, high school, then give
them a good college education
and have them shipped off
to Virginia, Florida,
Georgia, South Carolina.
I mean, we're not going to
survive if that takes place.
>> Well, it's an interesting
point.
Just to speak to what Dylan
had said, 86% of the people
that we surveyed said that
housing options were
an important reason
for them to stay on the island.
>> Right.
>> And that's important, and you
talk about the economics.
If we pay $20,000 a year
per student -- which is
kind of the low side
for some districts -- and
they're in school for 12 years,
that's $240,000
of our taxpayers' dollars
which are leaving the region
and benefiting someplace else.
And to talk about the
millennial -- the contribution
to the Long Island economy,
when you figure per capita...
income earnings, which is low,
it's about $30,000 a year.
Millennials earn more, but just
by the 500,000 millennials
that live on the island,
that would equate to about
$14 billion of direct earnings
and about $25 billion worth
of economic impact.
That's about 10%
of the Long Island economy.
That is a large, large amount to
put at risk to leave the region.
>> Is there a way
to turn this around?
>> Well, yeah.
I think part of it
is really interesting.
The Site Selection Guild,
which relocates most
of corporate America,
said the most important thing
to get businesses here
and to hire paying businesses
is to eliminate dysfunction
in government.
You know, and if you looked
under "dysfunction in
government," you'd have a
picture of Long Island
governments.
>> Mm-hmm.
>> You have so many
municipalities, towns, villages,
counties, school districts,
it drives a business crazy
to come here.
And how many type
of governmental agencies
do you have to push the peanut
to get your business here?
That discourages business.
>> Right.
>> And so we have to do a better
job of welcoming businesses.
To have the Heartland Park
in Islip Town wait for 15 years
to be able to get their permits
to put up housing is absurd.
>> Mm-hmm.
>> That's what discourages
business, so we have to change
how we look at business and do
business.
And, quite frankly,
the people that live here,
their parents, you folks,
you have to stop the NIMBY
approach where it says
if anything happens,
you're going to be against it.
>> Mm-hmm.
>> You know, you can't have
that.
>> Well, the "NIMBY approach,"
meaning what?
>> Oh, not in my --
>> Like, "Don't build a big
development in my area"?
>> It goes even worse than that.
Glen Cove, there was a proposal
for 14-room residence for people
with eating disorders.
The community turned it down.
>> Mm-hmm.
>> I mean, these are 14 people
living there, and the employees,
and they didn't want it,
and that's absurd.
You know, that's what
you're looking at.
You know, you have to realize
what is detrimental
to your community,
and we have to learn
to accept to live with
what we can live with,
and not just don't want to live
with anything.
>> Now, Dylan, you've got
a big, long commute into Queens
every day -- from Bohemia
to St. John's University,
where you work.
>> Yes.
>> And that's costly,
and it's time-consuming,
and you can't find a job closer?
You can't find a job
on the island that would pay you
a little bit more so that
you could perhaps get out
of Ally's parents' basement?
>> Well, that's the goal.
You know, I have been doing
some searching at some jobs now.
To be honest, a lot of them
are kind of a little bit less
than what I would be hoping for,
you know, being someone who
finished a four-year degree,
finished a master's degree,
and had eight years' worth of
working experience in the
environment in which I am.
Granted, it's athletics
for a college, a university,
but there's a lot of business
attributes that can transfer
to other, you know, industries.
>> Of course.
>> So, even trying to look at
something that, you know, would
match, a lot of it doesn't pay
enough, or slightly less than
what I currently make right now,
but I'm trying to be able to,
you know, put my name out there
and show people what I can do
to be able to get that higher
job, to be able to advance
myself, advance my family
so that I can take care of them.
>> So, are you considering
leaving?
>> Absolutely.
>> Yeah?
>> If push comes to shove,
you know, we would have to.
You know, especially with me
not working right now
to raise our children,
because of the fact...sending
them somewhere would
be just as expensive.
You know, my husband is one of
the most hardest-working
men that I know.
>> Mm-hmm.
>> He really, truly is.
He will go down to, you know,
the nubs of his fingers
working so hard.
And if he had an opportunity
somewhere else that sees
how hard he works and was
willing to pay him what he
deserves, I would tell him to
take it.
>> So, you'd move
to North Carolina?
>> Absolutely.
I've always told my husband,
"Wherever you would
like to go, I'll follow."
>> Uh-huh.
>> You know, he's part of my
world.
My children are my world.
As much as I love our family
here, you know, in the long run,
they're not gonna be paying our
mortgage, and I wouldn't want
them to have to pay our mortgage
or help us pay our mortgage.
So, I think they would also
understand because our parents,
growing up, struggled, as well.
You know, they had the help of
then -- You know, my parents
had the help of their parents.
His parents -- Literally,
his dad built a business
from the ground up.
>> Mm-hmm.
>> So, you know, they would
understand -- if wehad to
leave, we would have to.
>> But, Dylan, you don't
want to leave?
>> I do not, honestly.
You know, we've had this
conversation many times.
We would love to be here.
You know, this is where we grew
up.
You know, Ally, my wife, grew up
in Brooklyn, but she still
grew up in the Long Island area
when she moved here.
And, you know, my family's here.
Her family's here.
All of our friends are here --
for now.
>> Mm-hmm.
>> You know, we would love to
stay here, because we do love it
here, but if the opportunity to
stay, you know, is more costly
than the opportunity to move,
I think moving -- you know,
especially at a young age
and being able to take care
of our family --
that's the opportunity
that we have to take.
>> Marty, what about government?
What can government do
to help people like Dylan
and Ally stay here
and work here and thrive here
and help build Long Island
to become a bigger and more
profitable, prosperous place?
>> Well, having served
in government, you know,
sometimes you just have
to get out of the way.
You have to be able to find the
quickest way to get from
point "A" to point "B," and do
it, and have the gumption
to do it --
>> What, cut the red tape?
>> And cut the red tape,
not worry about re-election,
not worry about how many
votes you're going to get,
but doing the right thing for
the economy for the island.
>> Well, what would be the right
thing?
What's the right thing for them?
>> Well, the right thing for
them, first of all, is that --
The interesting point he brought
out, and he fits the perfect
model of the millennials.
91% have advanced -- have
college degrees, and 70%
have advanced degrees.
>> Mm-hmm.
>> And that's very important
to contribute to the economy.
You know, housing, housing
costs -- You know, housing costs
have been cited as a greater
impediment to staying here
than the size of the apartment
or, you know, you want
to be near train stations.
Walkability is an important
factor to raise a family and to
stay here, but the whole point
is that...
I've been saying for years that
the problem with Long Island
are its costs, and you can't --
>> Well, I mean, of course.
We all know that.
>> Yeah, you can't raise enough
revenues.
You know, and the talk is,
"Well, you have to expand the
tax base."
Well, there's not enough room
to expand the tax base to
reduce the costs of government.
>> Mm-hmm.
>> So you have to start looking
at consolidation of our units.
We have 124 school districts.
We have 10 towns and cities
on the island.
We have a myriad
of water districts
and sanitation districts.
We can set up one unified water
authority for the entire region
to get rid of all the patronage.
>> Yeah, but, Marty,
these are fiefdoms, and --
>> Oh, we know that.
>> Then there are
administrators, and there are
hundreds of workers that would
be...
>> It's political patronage,
Jim, and you know it
as well as I do.
>> I know, and who's going to
take that on?
>> Well, that's the point.
You know, if we -- If government
gets out of the way, and we have
some strong leadership who says,
"It's time to do this
to keep our next generation --
high-income-earning-potential
millennials, like Dylan -- to
remain here, and those other --
You know, the rest of the
500,000, instead of losing,
you know, 50,000 that we might,
that's what we have to do."
And somebody has to be able
to articulate the reason
that we have to consolidate
and reduce our costs rather than
keeping the status quo.
>> Right, and, Dylan,
you told me on the phone
about this program,
the State of New York
Mortgage Agency.
What would this do you for,
Dylan?
>> Well, one of their programs
that we looked into very,
very deeply was the
Achieving the Dream Program,
which is providing loans at a,
you know, lower interest rate
for first-time home buyers
to try to assist them with,
obviously, buying their first
home.
And one of the very interesting
things that we found while
doing the research was
the entire State of New York,
they have, you know,
income limits and housing,
property cost, you know,
where they can provide aid.
And for Long Island,
you can be making over $100,000
and still need assistance
buying your first home.
>> Mm-hmm.
>> So that was one very,
you know, glaring --
>> Shocking.
>> Yeah.
A very shocking revelation that
we found while we were doing
this.
And, you know, we had to look
into some other additional
opportunities to be able to
help.
You know, we looked into --
There's the Community
Development Corporation
of Long Island that provides
grants to first-time home buyers
once you go through some
training, so that would've
been...
You know, adding those two
things together would have been
great assistance for us.
Just sometimes, it doesn't
always work out.
>> Right.
Any other solutions
for you guys to stay?
I mean, Ally, I mean,
I guess, at some point,
you can go back to work,
but your kids are little, tiny.
>> Very, very. Yeah, yes.
>> So if you had a dual income,
would that make a difference?
>> That would make a huge
difference, just even
in the slightest bit,
you know, 'cause my income would
cover the cost of said bills,
and then his would cover
the rest of the other bills.
But at the same time,
if we didn't have kids,
you know, it'd be easier,
but then I also --
I wanted children.
>> Mm-hmm.
>> So, you know, it's tough
for young couples who are,
"Okay, let's wait until we're
financially ready for kids."
Truth is, nobody's financially
ready for kids at any given
point.
But it would help down the line
when the kids are in school.
That would help.
But who knows what the costs
will be at that point
when I go back to work?
>> Right.
>> Who knows?
>> Marty, a possibility that,
you know -- How about
daycare assistance?
I mean, Dylan was telling me
that, you know, on top of,
you know, all of the costs of
living, he's got enormous
student loans to pay back.
I mean, there's got to be some
help somewhere for these people,
or, you know, the brain drain
is going to be the brain gain
for some other region
of the country.
>> Well, it's true.
The beautiful part about
Long Island is that, you know,
it's a great place to live, but,
again, we talk about the costs.
And...the reason why
the Long Island Railroad
is so packed today --
There's a lot of folks going to
the city to earn a living
because the wages are higher.
>> Mm-hmm.
>> And that's our problem here,
is that, you know, since 2000 --
I know, this year, wages
have gone up about 2%.
But since the year 2000,
there has been almost
zero growth in the actual wage
when adjusted for inflation,
so when you have a situation
like that where your take-home
pay hasn't really gone up
appreciably to keep up
with the bills --
which have gone up over 30% --
that's the issue we have.
>> Mm-hmm.
>> Our economics are all
screwed up here on the island
to retain the people.
So, again, you have
to start taking a look.
You know, there's an old saying
in management that
a chronic problem requires
structural solutions,
and we have chronic problems
on Long Island in terms of
taxation, costs of government,
our cost of living.
And we keep on putting Band-Aids
on it to try to make it work,
but it's time to take a hard
look at the structure
of how we live, how we govern,
to address those issues
or the chronic problems.
Otherwise, we'll be coming here
10 years from now talking
about the same thing.
>> Well, one stat I read --
7 in 10 Long Islanders,
millennials, say that they may
move in the next five years if
they can't find affordable
housing.
If that were to come to be,
what would we be left with?
>> Well, we'd be left with old
folks like you and me, Jim...
[ Laughs ]
...without anybody to pay
the bills.
So, that's what we'd be left
with.
Look, the fact is you need
young people to replenish,
you know, the population,
you know, the workforce,
and that's important.
We can't be exporting
our workforce to New York City
or exporting our workforce
to Austin, Texas --
where you'd probably find
a great-paying job --
where a lot of millennials go.
>> Mm-hmm.
>> You know, and there's
a reason for that.
You know, Texas has a very low
tax rate.
In fact, very quickly, you know,
the tax reform act that
Congress just passed,
well, I have a friend of mine
who used to work for a state
senator here on Long Island.
He lives in Texas.
>> Mm-hmm.
>> You know, and I had done
a program about the tax reform,
what it would mean
to Long Island.
So, he E-mails me.
He says, "Listen, Long Island
has high costs.
We love that tax reform in Texas
because there's --
The property taxes are lower.
The income -- No income tax.
The housing costs are lower."
So, we're in a place where
we can't get out of our own way,
and the legislation that's
coming down is hurting us more.
>> And the taxes from the
federal government,
that's going to kill us?
>> Well, that'll kill us also,
and even how the New York state
reacts to the tax reform --
you know, coming up with
gimmicks on how you can deduct
your property taxes.
Well, do you know this year's
budget, state budget, is
billions more than it was last
year?
>> Mm-hmm.
>> So, the spending keeps on
going.
The income -- You know,
the raising taxes
will keep on going.
>> And the debt keeps going up.
>> And the debt keeps on going.
And the fact of the matter is,
these folks are gonna be paying
the debt payments down the years
because when you borrow money
today, they're paying it back.
>> All right.
>> And they can't afford to.
>> All right, but I just --
I still don't see any solutions.
>> You know, there was an old
comic strip, "Pogo."
And Pogo said, "We've met
the enemy, and they is us."
>> [ Chuckles ] Yeah.
>> And that's the truth.
There are no solutions because
we're not -- Our leadership
is not providing it.
>> And do you think
the leadershipcould provide it?
I mean, if you had a czar, could
you fix the dilemma that we're
in?
I mean, we've got
pension obligations.
We've got billions of dollars
in debt in Nassau County.
I mean, how do you fix that?
>> If I had a magic wand, what I
would find is that one person
who doesn't want to get
re-elected, who only wants to
change things to make it
affordable, put him in office
for four years, and let him do
what needs to be done --
or her do what needs to be done.
>> So, Dylan and Ally,
where do you see yourself
in the next few years?
I mean, what do you see
happening?
>> Well, I would love to see us
in our own home, a nice home.
You know, a lot of the problem
is that, like, affordable
housing, $150,000 to $200,000,
it's affordable,
but most of the time,
they're foreclosed homes,
you know, fixer-upper homes.
And we could afford that, but
then we would have to afford,
you know, fixing them.
So, in five years, I would love
to see us if -- I would love to
see us on Long Island
and around our families
in our own home.
But it's so hard to really
foresee what will be.
>> Dylan, do you think you're
going to be able to stick it up?
>> It's going to be tough,
honestly.
I mean, to be honest, I do
believe that we will end up
moving somewhere else,
which is very unfortunate,
but I think that's where we
would need to start our family,
and then, obviously, if earning
income advances where we can be
able to come back to
Long Island, that's an option.
But being able to stay here is
definitely something I don't see
as, you know,the top option
for our family moving forward.
>> But we talked about a few
things -- your student loans,
affordable housing,
and, obviously, the more money
that you make, the easier
it would be to stay here.
>> Yes.
>> Do you see anything that
looks like a solution for you?
>> Unfortunately, no.
You know, getting aid from,
you know, governmental agencies
is something that would be very
helpful, but it's not
necessarily a solution,
you know, because there's...
With the population
of Long Island,
we're not the only people
that are asking for that aid.
There's a lot of other people
that we're in competition with,
and so a quick solution
is definitely not achievable,
especially with the continuing
rise in cost in just property
taxes -- not necessarily just
house value, but property tax,
which is a yearly expense, not
just a, you know, mortgage
expense doled over for 30 years.
>> Right, but if you had some
assistance, let's say, to bridge
you past the student loans,
if you had some assistance
to help you with affordable
housing over a period of time --
like very low-interest-rate
loans that, you know,
weren't going to cost you
an arm and a leg -- and if Ally
could go back to work, I mean,
would that scenario
in some way keep you here?
>> Absolutely.
>> It would?
>> Absolutely.
>> And, Marty, that would mean
that government would have to
step in with more financing
with money that we don't have.
>> And there's no free lunch,
because everything --
I'm always...
It's remarkable to me
that when the government says,
"Well, this is a free program,"
it's not a free program.
Someone'S paying for it.
And that's part of the problem,
in particular with New York,
is that all the free programs
are coming out of somebody's
pocketbook somewhere.
>> Right.
>> If it's not now, it'll be
down the road with debt.
Not saying that the programs
aren't laudable.
It's saying that
they're not free.
>> Mm-hmm.
>> So, the fact is, is that if
you want to make it, we start --
And I hate to keep on
beating a dead horse,
but we have to start changing
what our cost of living is,
the structure of how we live,
the structure of how we govern,
and to start reducing costs
rather than every year
looking at a budget that borrows
more and spends more.
And whether that be
in the local level
or in the state level or in
the school districts, you know,
stop complaining about
the 2% cap.
You know, you have more
than you need to live,
you know, and to educate.
Let's start finding a way
to reduce the costs.
And if you do that,
then these folks can stay here,
because the property taxes
never go down.
>> Yeah.
>> Well, that sounds
like a great solution.
I hope we live long enough
to see it happen...
>> Well,I'm going to.
I don't know about you.
[ Laughter ]
>> ...so that these guys
can stay here and be a part
of Long Island...
>> Absolutely.
>> ...because we need you.
You know, we need -- we need
the millennials to stay here.
>> Well, that's the workforce.
If we don't have them,
then Long Island economy suffers
significantly.
>> Yeah.
Well, Marty, Ally, and Dylan,
thank you so much
for being with us today.
Really appreciate it.
And that wraps up our
conversation on the issues of
millennials leaving the island.
And to learn more about
the "Chasing the Dream"
Initiative, please visit
chasingthedreamproject.org.
And for more on the
"Long Island Business Report,"
log on to our website.
You can also find us on Facebook
and join the conversation
on Twitter.
I'm Jim Paymar.
Thank you for joining us
for this edition of the
"Long Island Business Report,"
and we'll see you next time.
>> Funding for the
"Long Island Business Report"
has been provided by...
the JPB Foundation
and the Ford Foundation.
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