Clawbacks and Other Enforcement Safeguards in State Economic Development Subsidy Programs
This report by Good Jobs First, a non-profit, non-partisan research center based in Washington, DC, analyzes the performance standards and enforcement policies of the states’ major economic development programs. The study shows that most states are highly inconsistent in how they monitor, verify and enforce the terms of job subsidies that cost taxpayers billions of dollars per year. New York State had one of the poorest track records, receiving a score of D+ and ranking 45th out of the 50 states plus the District of Columbia.
The report scored New York’s Brownfield Cleanup Program, Empire State Film Production Credit, Empire Zone Program, Excelsior Jobs Program and Industrial Development Agencies (IDAs); programs whose annual cost in their most recent reporting year totaled nearly $1.6 Billion. The report found that while some of New York’s most expensive economic development programs may have internal reporting requirements and some accountability measures, the State fails to make these policies systematic, rigorous and transparent, leaving New Yorkers in the dark as to whether economic development dollars are being invested wisely.
More information available on the Good Jobs First website.