Industrial Development Agencies statewide continue to under-perform and fall short of their job creation promises, according to a watchdog group’s analysis of new state data.
The analysis released this afternoon by the Getting Our Money’s Worth Coalition – made up of unions, public policy experts, business owners, taxpayers and others – continued the group’s long-held criticism of IDA projects, saying they are “ineffective” and have “a legacy of failure.”
From the analysis, which is based on new data from the state Authorities Budget Office, which oversees IDAs and other public authorities:
- $162 million in IDA tax breaks went to companies that lost jobs, failed to create a single job, or never made any job creation promises.
- Over one-half of all projects that ended in 2011 failed to create a single job and 94 subsidy agreements that ended in 2011 lost jobs. These businesses originally agreed to create a total of 5,971 jobs. Instead, they lost 17,017 jobs. Of the 52,565 jobs agreed to be retained by projects ending in 2011, these projects lost 1,166 net jobs.
- IDAs have maintained high spending on net tax exemptions, spending $490 million in 2011, slightly more than they spent in 2010. Since reporting began in 2003, IDAs have spent a total of over $4 billion in net tax exemptions.
- Local governments are increasingly picking up the tab for corporate tax exemptions, losing $401 million in tax revenue in 2011, including $211 million lost to local schools.
Last year, Tax Watch examined IDA projects in Westchester, Rockland and Putnam, revealing that $16 million in tax exemptions went to companies that actually lost 2,100 jobs.
There are 10 local IDAs: county-run agencies in Westchester, Putnam and Rockland and municipal IDAs in Yonkers, Mount Vernon, New Rochelle, Port Chester, Mount Pleasant, Peekskill and Southeast.
Read more about the new analysis on the website of Align NY, the lead group in the Getting Our Money’s Worth Coalition. Also, read the ABO’s report on IDA’s: http://www.abo.ny.gov/reports/annualreports/ABO2013AnnualReport.pdf