Support IDA Reform Now!

 

Industrial Developmental Agencies need to be reformed now in New York State!

Urge the Governor and the State Legislature to support IDA reform now! 

Tell them, “IDAs are the main source of economic development subsidies at the local and county level.  In return for a commitment to create jobs, they give businesses property and sales tax breaks. However when abused, IDAs waste taxpayer dollars and don’t provide a good return on our public investment. Let's reform the broken IDA system now!"

Sample Letter for Campaign

Subject: Support IDA Reform Now!

Dear [ Decision Maker ] ,

I am writing to ask for your help to pass real reform of our outdated industrial development agency (IDA) law. For too long IDAs have operated in the dark and have squandered millions of dollars in tax cuts and other hand outs to business without delivering any benefits for the people living in these communities. It is time to end this blatant giveaway before we revive the part of the law that expired at the end of January.

The most important reform is to ensure that real jobs are created. The only way to do that is to ensure prevailing wage is paid on all IDA projects. For jobs that do not have prevailing wage, we need a bottom line, living wage established. It is time to ensure that IDAs create good paying jobs in the community instead of just handing public money over to business to do whatever they want.

Real reform must allow for communities to reclaim the tax breaks or other incentives from business that do not live up to their promises. We also need to shed light on IDA deal making powers and better oversight.

Years and years of neglecting IDA operations have helped to create the desperate economic conditions in many of our communities. The future of our economy will rely on fair and responsible economic development projects. I hope we can count on your leadership to get that reform now.

Sincerely,

Campaign Launched:
February 15, 2008



Background Information

 Industrial Development Agencies (IDAs) are an important tool to create jobs in our communities. They are the main source of economic development subsidies at the local and county level.  In return for a commitment to create jobs, they give businesses property and sales tax breaks.

When abused, however, IDAs waste taxpayer dollars and don’t provide a good return on our public investment.  To ensure that our IDAs are supporting responsible businesses that will deliver on their promises to provide good jobs and services to New Yorkers, we are working with allies across the state to pass these reforms:

1.  BUSINESS STANDARDS

  • Prevailing & Living Wages for All Jobs on Subsidized Projects
  • Local Hiring Requirements that draw from Regional Labor Pools
  • Apprenticeship Requirements for Construction Contractors & Sub-Contractors
  • Green-Building & Anti-Sprawl Requirements for all New Construction & Development

2.  ACCOUNTABILITY MEASURES

  • Designated Labor, Environmental, & School Board Representation on IDA Boards
  • Subsidy-Recapture Provisions for Broken Contracts (“Clawbacks”)
  • Anti-Raiding Measures to Restrict IDAs from Attracting Businesses Away from Other Areas of NY

3.  TRANSPARENCY REFORMS

  • Community Impact Reports available to the public prior to project hearings and approval
  • Improved Reporting by IDAs to the state and by businesses to the IDAs
  • Publicized Hearings to ensure increased opportunities for community input