In the state election of 1974, Carey became New York's first Democratic governor in 16 years, unseating incumbent Republican Malcolm Wilson, who had assumed the office after Nelson Rockefeller resigned in December 1973 (to work on the Commission on Critical Choices for Americans).
Nationally, the 1974 election was dominated by the Watergate scandal which had destroyed President Richard Nixon's presidency and hurt Republicans nationwide.
In 1974, Democrats also recaptured the New York State Assembly.

Carey is best remembered for his successful handling of New York City's economic crisis in the mid-1970s.
Carey came into office with New York City close to bankruptcy and is credited with bringing business and labor together to help save New York City from the fiscal crisis.
Carey managed to keep the growth of state spending below the rate of inflation through his frequent use of line-item vetoes and fights with the New York State Legislature, which was at the time divided between a Republican-controlled Senate and a Democratic-controlled Assembly.

Upon taking office, Carey cut taxes significantly, reducing corporate taxes from 14% to 10%, and capping personal income tax at 9%, and reducing capital gains taxes as well.
His administration also offered tax credits to encourage new investment.
 As governor, he was responsible for building the Jacob K. Javits Convention Center; Battery Park City; the South Street Seaport and the economic development of the NYC boroughs outside Manhattan.
He also helped provide state funding for the construction of the Carrier Dome at Syracuse University.
He is also remembered for preventing conservative legislators from reinstating the death penalty and preventing such legislators from taking away state abortion laws.

Carey signed the Willowbrook Consent Decree, which ended the warehousing of the mentally ill and developmentally disabled.
His vision and leadership led to the community placement of the mentally ill and developmentally disabled.
He also made major strides in community programs for the mentally ill.
Carey also pardoned Cleveland "Jomo" Davis, one of the leaders of the Attica prison riots.

Carey's tenure in office was marked by a growing awareness of the environmental consequences of New York's strong industrial base, including the designation by the federal government of the Love Canal disaster area.
Carey made environmental issues a priority of his administration.

Along with Senators Edward Kennedy and Daniel Patrick Moynihan and U.S. House Speaker Tip O'Neill, Carey led efforts to end the violence in Northern Ireland and support peace in the region.
The four Irish-American politicians called themselves "The Four Horsemen."

Carey considered running for president in 1976 and 1980.
Carey's first wife had died in 1974, and Carey later attributed his decision not to seek the Democratic nomination for president in 1976 to her death.
In 1978, he was challenged for re-election by State Assembly Minority Leader and former Assembly Speaker Perry Duryea.
After a competitive, sometimes negative campaign, Carey was the first Democrat re-elected in 40 years.

Carey decided against seeking a third term as governor in 1982 and returned to private law practice.
On January 1, 1983, he was succeeded by his lieutenant governor, Mario Cuomo.
In the state election of 1974, Carey became New York's first Democratic governor in 16 years, unseating incumbent Republican Malcolm Wilson, who had assumed the office after Nelson Rockefeller resigned in December 1973 (to work on the Commission on Critical Choices for Americans). Nationally, the 1974 election was dominated by the Watergate scandal which had destroyed President Richard Nixon's presidency and hurt Republicans nationwide. In 1974, Democrats also recaptured the New York State Assembly.
Carey is best remembered for his successful handling of New York City's economic crisis in the mid-1970s. Carey came into office with New York City close to bankruptcy and is credited with bringing business and labor together to help save New York City from the fiscal crisis. Carey managed to keep the growth of state spending below the rate of inflation through his frequent use of line-item vetoes and fights with the New York State Legislature, which was at the time divided between a Republican-controlled Senate and a Democratic-controlled Assembly. 
Upon taking office, Carey cut taxes significantly, reducing corporate taxes from 14% to 10%, and capping personal income tax at 9%, and reducing capital gains taxes as well. His administration also offered tax credits to encourage new investment.  As governor, he was responsible for building the Jacob K. Javits Convention Center; Battery Park City; the South Street Seaport and the economic development of the NYC boroughs outside Manhattan. He also helped provide state funding for the construction of the Carrier Dome at Syracuse University. He is also remembered for preventing conservative legislators from reinstating the death penalty and preventing such legislators from taking away state abortion laws.
Carey signed the Willowbrook Consent Decree, which ended the warehousing of the mentally ill and developmentally disabled. His vision and leadership led to the community placement of the mentally ill and developmentally disabled. He also made major strides in community programs for the mentally ill. Carey also pardoned Cleveland "Jomo" Davis, one of the leaders of the Attica prison riots.
Carey's tenure in office was marked by a growing awareness of the environmental consequences of New York's strong industrial base, including the designation by the federal government of the Love Canal disaster area. Carey made environmental issues a priority of his administration.
Along with Senators Edward Kennedy and Daniel Patrick Moynihan and U.S. House Speaker Tip O'Neill, Carey led efforts to end the violence in Northern Ireland and support peace in the region. The four Irish-American politicians called themselves "The Four Horsemen."
Carey considered running for president in 1976 and 1980. Carey's first wife had died in 1974, and Carey later attributed his decision not to seek the Democratic nomination for president in 1976 to her death. In 1978, he was challenged for re-election by State Assembly Minority Leader and former Assembly Speaker Perry Duryea. After a competitive, sometimes negative campaign, Carey was the first Democrat re-elected in 40 years. 
Carey decided against seeking a third term as governor in 1982 and returned to private law practice. On January 1, 1983, he was succeeded by his lieutenant governor, Mario Cuomo.
Hugh Carey