After talking with a few out of towners, I live in Buffalo NY, I realized not many people are aware of what sponge candy is. I'm pretty sure it isn't native to New York, but since some people I've talked to have never heard of it.

Sponge candy, or Honeycomb Toffee, is made by heating, corn syrup (or various other syrups can be used), vinegar, and sugar. After the mixture reaches the correct temperature, you add baking soda which causes the vinegar to bubble up in the corn syrup. After chilling, the result is a brick of golden, sponge-like candy. This brick is cut into squares and then coated with chocolate. Sponge candy tastes pretty good, even though it's basically chocolate covered sugar.

A recipe can be found here:

http://www.cooksrecipes.com/candy/old-fashioned-sponge-candy-recipe.html