SAME-SEX MARRIAGE: GOOD FOR CITY AND STATE

THOMPSON: NYS ECONOMY WOULD GAIN $210 MILLION AFTER LEGALIZATION OF OF MARRIAGE FOR SAME-SEX COUPLES

New York City Comptroller William C. Thompson, Jr. today issued an updated analysis finding that New York State's economy could gain $210 million in the three years immediately following the legalization of marriage for same-sex couples.

"New York State and New York City stand to benefit economically if marriage equality is passed in our State," Comptroller Thompson said. "Legalizing marriage for same-sex couples is not only good for the couples, but also for our economy.

"And while other states across our nation have legalized marriage for same-sex couples since my last report, I expect New York to still stand as a prime destination for many couples because it will stand as a welcoming beacon of diversity and acceptance."

Thompson's analysis updates his 2007 study, "Love Counts: The Economic Benefits of Marriage Equality for New York," assessing the financial and economic affects of the legalization of marriage for same-sex couples on New York City and State. The new analysis takes into account both the legislative strides and the economic straits across the nation.

Earlier this month, Maine became the fifth state to legalize marriage for same-sex couples, joining Massachusetts, Connecticut, Iowa and Vermont. A poll out last month finds that New York State voters favor same-sex couples being allowed to marry by 53 to 39 percent.

Amid passage of marriage equality laws in other states and efforts to legalize marriage of same-sex couples in New York, Thompson's office revised his initial estimates and adjusted for greater options available to same-sex couples contemplating marriage as well as inflation, and the recession. Accordingly, Thompson's analysis finds that passage in New York State could yield (over the course of three years):

• $210 million for New York State, if the economy were not to have any effect on wedding spending. However, assuming that the recession leads to a 50 percent reduction in the number of out-of-state guests attending "destination" weddings in New York, that number would drop to $178 million.
• $149 million for New York City, if the recession did not have any effect. That number would drop to $120 million if it did.

In determining the new numbers, the Comptroller's Office factored in the nation's sagging economy and the fact that other a greater number of states now permit marriage for same-sex couples.

As a result, the analysis accounts for fewer people staying overnight when attending weddings in New York City or State, and fewer guests attending the events.

"A struggling economy is assumed to result in a lower percentage of destination weddings - to any region - as well as fewer people traveling to attend," Thompson said. "This would likely prompt more couples to have daytrip weddings, and for many guests to stay for shorter periods of time."

The new analysis also factors in incremental health costs to employers who offer family health insurance benefits to their employees. For those employers who do not already offer benefits to domestic partners, the Comptroller's analysis estimated that additional insurance costs for family coverage would total $69 million statewide, of which $37 million would be shouldered by New York City employers.

Netting out these costs would lower the three-year economic benefits of marriage equality to $109 million for New York State and $83 million for New York City assuming that wedding spending is also curtailed by the recession. If not, net impacts would be $141 million for the State and $112 million for the City.

Thompson pointed out that the figures do not capture all of the potential impacts of legalizing marriage for same-sex couples. For instance, firms may face lower recruiting costs or an expanded pool of qualified candidates if same-sex couples are more likely to move to New York as a result of the change.

The Comptroller noted his Office adopted a conservative approach to produce the estimates in the report, and noted that while the recession and increased options for same-sex couples to marry in nearby states may have caused the overall numbers to decrease, other facts have cushioned that drop: a higher rate of inflation in 2009 and greater numbers of same-sex couples, according to data from the U.S. Census Bureau.

Thompson further noted that since domestic partners of New York State and City employees already are eligible for health benefits under the law, it's unlikely that the public sector would incur additional costs due to spousal health benefits if marriage for same-sex couples if legalized.

Additionally, individuals who receive assistance under certain means-tested programs - such as the State's Medicaid program - may become ineligible for them if they marry someone whose income or assets are sufficient to lift them above the income and asset thresholds for these programs. Thompson - in the 2007 report - estimated that the State would save about $110 million in Medicaid outlays over the three-year period looked at in the report.

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