Reform IDA's Today!

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

Support S. 2413 Maziarz, et al. and A. 8703 Hoyt et al.

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

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 this year!"

Sample Letter for Campaign

Subject: Please Support IDA Reform Today!

Dear [ Decision Maker ] ,

I am writing to urge your support of A. 8703 Hoyt and S. 2413 Maziarz, which would reform the way Industrial Development Agencies operate in our state.

IDAs are the main source of economic development subsidies at the local and county level. In return for a commitment to create jobs, IDAs provide businesses with property and sales tax breaks. When abused, however, IDAs waste taxpayer dollars and don't provide a fair return on our public investment. Taxpayers deserve to be confident that our IDAs support responsible businesses that will deliver on their promise to provide good jobs and necessary services to New Yorkers. If the companies don't deliver, taxpayers should get their money back.

These bills would ensure that IDAs meet accountability measures to taxpayers, that they provide a return on their investment, and that business standards are met which protect workers by providing good jobs with good pay. Last, the bills would protect our tax dollars by guaranteeing transparency in reporting and accounting practices.

Experience has shown the need for these changes. In 2005 businesses that received IDA aid promised to create 217,000 jobs. They created only 79,000, or 36% of those promised. Also local governments gave corporations $266 million in tax breaks, but 69% of the IDA subsidized companies actually cut jobs!

Let's reform the broken IDA system this year! IDA supported businesses must deliver on their promises to New Yorkers.

Thank you for your time.

Sincerely,

Campaign Launched:
June 13, 2007


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

The Senate and Assembly actively considered the legislation through the 2006 session and the Assembly passed A10787.  When the Senate did not take action on the reforms, both houses ultimately passed a one-year extender of the law authorizing IDAs, portions of which were due to sunset in June, 2006.

The legislature must take action again on IDAs by June 30, 2007.  In 2007, the NY IDA coalition is again promoting a strong set of business standards, accountability measures, and transparency reforms to strengthen the IDAs and economic development in our communities.