TAXPAYERS SAY ENOUGH IS ENOUGH!
This past Friday (6/18), we made a wake-up call to Senators William Stachowski and Antoine Thompson, telling them that it is time to fix NYS's broken economic development plans, create quality jobs, and put NY on the road to recovery.
Fellow concerned taxpayers joined us as we carried out a skit showing how Industrial Development Agencies use taxpayers like ATM machines - withdrawing large amounts of cash! The performance gave those in attendance a view into what an IDA board meeting might look like. Although, in real life it's not nearly as comical.
IDAs are the main engine for economic development throughout NYS. They award tax exemptions and tax-free bond financing to businesses in return for job creation and retention. However, a new audit released on May 7, 2010 by NYS Comptroller DiNapoli shows that while spending by IDAs increased, job creation decreased. The Comptroller's report, based on 2008 data, shows net tax exemptions grew 9% over the previous year to $645 million, but job creation decreased nearly 14%.
With the economic crisis we are currently facing, we can no longer afford to give away $645 million in net tax exemptions. And we certainly cannot keep letting IDAs and corporations use taxpayers like their own personal ATMs.
Check out the full script of the skit below!
Rally to Sound the Alarm for Good Jobs
By Andy Reynolds
Location: 237 Main Street
Date: 6.18.10
Time: 12:00 PM
An IDA Board Meeting to Approve Tax Break for Corporation in 1 Act:
Setting: IDA Board Meeting
Designated “Cast”:
IDA Board President: Andy Reynolds
Corporation: Jim Anderson
ATM (Taxpayer) Machine: Rachel Wilson
Activist: Terrence Robinson
Act 1: The Board Meeting (IDA Board President stands behind table; Corporate CEO stands in front of table; and ATM Machine stands to the side of the table)
IDA: “The Everyone’s Cash Industrial Development Agency has one order of business: To give away taxpayer dollars to corporations. With New York State Government soundly asleep, we can do whatever we want with the public’s money.
You look like a fine outstanding business and we’re desperate to make deals. The more deals we make, and the bigger they are, the more money we make here at the IDA. So, The Everyone’s Cash IDA board has decided to give you a million dollars for every job you create.”
Corporation: “We were going to build the project without taxpayer subsidies, but since you are offering, we will take your money.”
IDA: “Well, it isn’t our money, so what do we care. We were created as a public benefit corporation to help companies save or create good paying jobs. We prefer instead to give corporations, and sometimes even amusement parks, handouts and look the other way when they create low paying jobs or don’t create any jobs at all.
It’s much easier for everyone. I mean, we can’t even find the filing cabinet we place billing information in to make sure corporations are paying their taxes on time. Speaking of paying taxes, how long would you like to avoid having to pay your ‘fair share’.” (IDA says mockingly, using finger quotes, when saying ‘fair share’).
Corporation: “Let’s start with 15 years. We can always ask for another 15 year extension when that time is up or we might just move to another suburb before we have to start paying taxes. I’m sure the Amherst IDA would be happy to give us a huge tax-break.
IDA: “You are under no obligations here. You can take this money and run. We both know that a lot of other corporations have already done the same. By the way, we can give you the public funding to build an office park way out in the middle of nowhere. You know the saying: If you build it . . . sprawl will come.”
“Now that we both understand how this agreement works, why don’t you head over to the taxpayer ATM and take as much money as you want?” How many jobs did you say you would create?”
Corporation: “I didn’t, but we can pretend I did.”
Both IDA and Corporation laugh as corporation takes cash from ATM.
Activist:
The 115 IDAs across NYS might not have ATMs in their lobbies, but the skit you just witnessed isn’t too far a cry from what happens regularly here in Erie County and across NYS.
Industrial Development Agencies are one of NY’s primary engines for job creation and economic development. They are authorized by the state to provide financial assistance to “advance the job opportunities, health, general prosperity, and economic welfare of the people of the state of NY.” These quasi-governmental agencies grant projects exemptions from state and local taxes and issue tax exempt bonds.
In a time of great economic uncertainty for many individuals and families across NYS, including here in Buffalo, IDAs are spending more of our taxpayer dollars, and doing less for our communities.
IDAs having been failing us for too long! IDAs are now giving away $645 million in net tax exemptions each year. We’re facing the worst economic crisis since the Great Depression. We can no longer afford to give away the candy store. $645 million is not an insignificant amount of money. Combine that figure with the half a billion dollars we throw away each year through the Empire Zone program and the money starts to add up.
If ever there was a time for meaningful reform it is now. But, The State Legislative session is slated to end next week and so called elected leaders haven’t even passed a budget.
Instead of talking about how many teachers we need to layoff, or what social services we need to slash, why don’t our elected leaders in the Assembly, the Senate, and the Governor’s office start making the ‘tough choices’ they keep saying need to be made.
The NYS Assembly has consistently acted in support of IDA reform, but for reform efforts to move forward the Senate needs to wake up and realize it’s time to work with the Assembly to craft a winning bill.
We’ll be delivering our wake up call to WNY majority Senators Stachowski and Thompson today, asking them to work with the Assembly and Senate Leadership to fix our broken economic development system and put folks to work in quality jobs.
IDAs are plagued by poor performance and ill-equipped to aid in our economic recovery. It’s time to Get our Money’s Worth.
This past Friday (6/18), we made a wake-up call to Senators William Stachowski and Antoine Thompson, telling them that it is time to fix NYS's broken economic development plans, create quality jobs, and put NY on the road to recovery.
Fellow concerned taxpayers joined us as we carried out a skit showing how Industrial Development Agencies use taxpayers like ATM machines - withdrawing large amounts of cash! The performance gave those in attendance a view into what an IDA board meeting might look like. Although, in real life it's not nearly as comical.
IDAs are the main engine for economic development throughout NYS. They award tax exemptions and tax-free bond financing to businesses in return for job creation and retention. However, a new audit released on May 7, 2010 by NYS Comptroller DiNapoli shows that while spending by IDAs increased, job creation decreased. The Comptroller's report, based on 2008 data, shows net tax exemptions grew 9% over the previous year to $645 million, but job creation decreased nearly 14%.
With the economic crisis we are currently facing, we can no longer afford to give away $645 million in net tax exemptions. And we certainly cannot keep letting IDAs and corporations use taxpayers like their own personal ATMs.
Check out the full script of the skit below!
Rally to Sound the Alarm for Good Jobs
By Andy Reynolds
Location: 237 Main Street
Date: 6.18.10
Time: 12:00 PM
An IDA Board Meeting to Approve Tax Break for Corporation in 1 Act:
Setting: IDA Board Meeting
Designated “Cast”:
IDA Board President: Andy Reynolds
Corporation: Jim Anderson
ATM (Taxpayer) Machine: Rachel Wilson
Activist: Terrence Robinson
Act 1: The Board Meeting (IDA Board President stands behind table; Corporate CEO stands in front of table; and ATM Machine stands to the side of the table)
IDA: “The Everyone’s Cash Industrial Development Agency has one order of business: To give away taxpayer dollars to corporations. With New York State Government soundly asleep, we can do whatever we want with the public’s money.
You look like a fine outstanding business and we’re desperate to make deals. The more deals we make, and the bigger they are, the more money we make here at the IDA. So, The Everyone’s Cash IDA board has decided to give you a million dollars for every job you create.”
Corporation: “We were going to build the project without taxpayer subsidies, but since you are offering, we will take your money.”
IDA: “Well, it isn’t our money, so what do we care. We were created as a public benefit corporation to help companies save or create good paying jobs. We prefer instead to give corporations, and sometimes even amusement parks, handouts and look the other way when they create low paying jobs or don’t create any jobs at all.
It’s much easier for everyone. I mean, we can’t even find the filing cabinet we place billing information in to make sure corporations are paying their taxes on time. Speaking of paying taxes, how long would you like to avoid having to pay your ‘fair share’.” (IDA says mockingly, using finger quotes, when saying ‘fair share’).
Corporation: “Let’s start with 15 years. We can always ask for another 15 year extension when that time is up or we might just move to another suburb before we have to start paying taxes. I’m sure the Amherst IDA would be happy to give us a huge tax-break.
IDA: “You are under no obligations here. You can take this money and run. We both know that a lot of other corporations have already done the same. By the way, we can give you the public funding to build an office park way out in the middle of nowhere. You know the saying: If you build it . . . sprawl will come.”
“Now that we both understand how this agreement works, why don’t you head over to the taxpayer ATM and take as much money as you want?” How many jobs did you say you would create?”
Corporation: “I didn’t, but we can pretend I did.”
Both IDA and Corporation laugh as corporation takes cash from ATM.
Activist:
The 115 IDAs across NYS might not have ATMs in their lobbies, but the skit you just witnessed isn’t too far a cry from what happens regularly here in Erie County and across NYS.
Industrial Development Agencies are one of NY’s primary engines for job creation and economic development. They are authorized by the state to provide financial assistance to “advance the job opportunities, health, general prosperity, and economic welfare of the people of the state of NY.” These quasi-governmental agencies grant projects exemptions from state and local taxes and issue tax exempt bonds.
In a time of great economic uncertainty for many individuals and families across NYS, including here in Buffalo, IDAs are spending more of our taxpayer dollars, and doing less for our communities.
IDAs having been failing us for too long! IDAs are now giving away $645 million in net tax exemptions each year. We’re facing the worst economic crisis since the Great Depression. We can no longer afford to give away the candy store. $645 million is not an insignificant amount of money. Combine that figure with the half a billion dollars we throw away each year through the Empire Zone program and the money starts to add up.
If ever there was a time for meaningful reform it is now. But, The State Legislative session is slated to end next week and so called elected leaders haven’t even passed a budget.
Instead of talking about how many teachers we need to layoff, or what social services we need to slash, why don’t our elected leaders in the Assembly, the Senate, and the Governor’s office start making the ‘tough choices’ they keep saying need to be made.
The NYS Assembly has consistently acted in support of IDA reform, but for reform efforts to move forward the Senate needs to wake up and realize it’s time to work with the Assembly to craft a winning bill.
We’ll be delivering our wake up call to WNY majority Senators Stachowski and Thompson today, asking them to work with the Assembly and Senate Leadership to fix our broken economic development system and put folks to work in quality jobs.
IDAs are plagued by poor performance and ill-equipped to aid in our economic recovery. It’s time to Get our Money’s Worth.
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