In 1974, the New York State Legislature enacted legislation creating the Empire State Youth Theatre Institute (ESYTI). In 1982, as part of a collaboration with the Empire State Plaza Performing Arts Center in Albany (known as "the Egg"), ESYTI changed its name to the Empire State Institute for the Performing Arts (ESIPA). In 1986, the institute became the first theatre company from the United States to perform in the former Soviet Union upon resumption of cultural relations between the two countries. In 1992, the New York State Legislature enacted further legislation to reorganize the institute as a public benefit corporation called the New York State Theatre Institute (NYSTI). Performances moved to a theater on the Troy campus of Russell Sage College.
The driving force behind the foundation of the institute was Patricia Di Benedetto Snyder, who remained as artistic director throughout the institute's lifespan. The institute's mission was to produce professional theatre for families and school audiences. Many of the plays were selected for their appeal to youthful audiences or were adapted to suit a younger age group. The institute's educational services included pre-show introductions and study guides, inter-disciplinary classes following performances, educational outreach programs, a Theatre Arts School, summer theatre programs, and an intern and educator-in-residence program. The institute also sponsored musical events in the Capital Region, hosted visiting theater troupes, and took plays on international tours.
Rumors of mismanagement, nepotism, and improper spending surfaced in 2006. A lengthy investigation by the New York State Inspector General's Office resulted in a report, issued in April 2010. The report upheld many of the allegations and Patricia Snyder resigned as director. Amid general budget constraints, state funding for the institute was severely reduced. The State University of New York covered production costs for the institute's final shows up to December 2010. The institute was dissolved in December 2010 by a temporary board appointed by Governor David Paterson.
