NEW YORK CITY-As of Wednesday morning, New York State will have elected its next governor and most likely chosen quite a few new legislators to replace the incumbents. Among the challenges confronting the lawmakers when they convene in January will be a projected $9-billion budget deficit for fiscal 2012 and the dubious distinction of presiding over a state that ranks last in the latest State Business Tax Climate Index.

The state has been bouncing along the bottom of the Tax Foundation’s index for at least the past five years, so its new low came as little surprise. (Second worst for a business-friendly tax climate this year was California, while New Jersey actually improved its standing somewhat; it had been in last place for three consecutive years.) In a statement issued last month, Kenneth Adams, president and CEO of the Business Council of New York State, called the ranking “another clear message that business as usual must end in Albany.” And Steven Spinola, president of the Real Estate Board of New York, tells GlobeSt.com, “We in the State of New York tend to be number one when it comes to taxing.”

To help overcome that dead-last ranking and improve its competitive posture, REBNY is advocating attention to a number of tax areas. “The tax surcharge on high income earners runs through 2011,” says Spinola. “So one of the important messages to the business community is: will the State Legislature let that expire, or will they extend it and continue to send a negative message that New York is not very receptive to businesses and high income earners staying here?”