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Dyson spent a decade in New York state government, including four years in the Cabinet of Gov. Hugh Carey. In April 1975, Carey appointed Dyson as Commissioner of Agriculture and Markets. In December 1975, Dyson was appointed by Carey to serve as Commissioner of Commerce, which put him in charge of economic development and tourism. While serving as Commerce Commissioner, the "I Love New York" campaign was founded. In 1979, Dyson left the Commerce Department when Carey appointed him Chairman of the New York Power Authority, which runs a series of power plants around New York State, including a large hydroelectric plant in Niagara Falls. Dyson was retained as Power Authority Chairman by Gov. Mario Cuomo and served as NYPA until 1985.
In 1986, Dyson ran for the Democratic Nomination for the U.S. Senate, a race Cuomo encouraged him to undertake. Dyson lost the Democratic nomiation to consumer advocate Mark J. Green. In 1994, Dyson was appointed as Deputy Mayor of New York City by Mayor Rudy Giuliani. As deputy mayor, Dyson was in charge of economic development and finance for the city. He served as deputy mayor until 1996, when he returned to private life. He continued to serve in the Giuliani Administration from 1996 to 2002 in the part time position of Chairman of the Mayor's Council of Economic Advisors. In the economic advisors chairmanship, Dyson worked on economic issues impacting the city following the September 11 terrorist attacks on the World Trade Center. From 1981 to 2001, Dyson was an appointee of the Governor of New York on the Board of Trustees of Cornell University.
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