Two hundred years ago, New York State inspired the nation with an engineering marvel. By opening the Erie Canal in 1825, New York connected itself to the heartland, bringing farm products to New York and exporting manufactured goods to the West.  The resulting trade brought great prosperity and led to the rise of Buffalo and Rochester and New York City. The economic boom reverberated throughout the state, contributing to the founding of such household-name corporations as American Express, Kodak, IBM and Xerox. New York no longer leads the nation. Its population is declining (an almost 340,000 drop in the last five years), safety and quality of life crises pervade the state, and individuals and companies are leaving for other states.  New York can regain its standing as the nation’s leading state, if it shows that it can still accomplish big things. What is the next generation major infrastructure project? What is the next game-changing idea akin to Mayor Mike Bloomberg’s applied sciences competition?  To push the Empire State forward, Gov. Hochul must use this week’s state of the state address to focus on a few key areas. The state’s budget has dramatically increased from $173 billion to $237 billion in six years. The state (including all localities) now leads the nation in taxes and spends more per capita than every other state (except Alaska). Raising taxes cannot be the answer to every problem. Efficient government is paramount. To stop the flight, we need to control additional costs on private businesses and landlords while making the state more affordable, especially housing, for residents.  New Yorkers must not just be safe but feel safe. The bail and discovery reforms implemented in 2019 are well-intentioned policies that, in practice, ultimately skewed too far away from protecting victims and the public. The scale of justice needs to be rebalanced. Two fundamental reforms must be passed. First, judges must be empowered to consider public safety risks when setting bail. New York is alone in the nation in prohibiting such a standard. No longer can we allow the small number of individuals who drive an inordinate number of crimes — one individual alone having been arrested 39 times — to roam the streets.  Second, the pre-trial discovery reforms to accelerate the process and help defendants make informed decisions whether to accept a plea deal or mount a defense have failed. Rather, we have seen fewer plea bargains and fewer cases going to trial. More cases are being dismissed — rising from 41% to 61% — because prosecutors cannot meet the technical requirements, burdensome paperwork and deadlines of the new discovery law.  Simply put, the burden is too high in the opposite direction.  We have seen a disturbing rise in individuals with mental health issues. Both the governor and attorney general recognize the problem of individuals suffering from serious mental illness and the fear New Yorkers feel when violent mentally ill people attack innocent bystanders. The governor is right to make it easier to involuntarily commit and treat dangerous mentally ill New Yorkers. She needs to articulate a detailed plan to change the involuntary commitment standards by empowering courts and hospitals to ensure more mentally ill people receive the care they need. Currently, no one is being safeguarded. Committing those with such illnesses into treatment facilities is more humane than abandoning them to the streets.  These criminal and mental health reforms will enhance quality of life, which, in turn, will help the state’s overall business climate and social environment. Congestion pricing has put the nation’s spotlight on New York to see if it can accomplish the plan’s goals. Full transparency is essential. The governor must commit to an ongoing detailed analysis — with real data on vehicular traffic in the congestion zone — before the state imposes additional fees. Similarly, the MTA must be accountable to complete its projects and run efficiently. New Yorkers need to monitor the MTA’s stats on subway usage, completion of large infrastructure projects, safety and toll and fare evasion. (Approximately $700 million annually is lost from those who evade fares and tolls.) With the entire country watching, the governor can demonstrate that the congestion toll is not a “money grab” but rather money well invested.  No doubt, New York is doing many things right. The state has a highly educated workforce and top tier education system, world class cultural institutions, a highly diversified, geographically balanced economy, and high tourism, among other attributes. In an age of great mobility and a highly competitive economic environment, New York cannot rest on its laurels. The Empire State needs to be true to its motto, Ever Upward.  Gertler is CEO of U.S. News & World Report and the former CEO of Empire State Development.