Press Releases

For the IDA Campaign


Media Release - May 9, 2006


Contacts: 
      Michael Rabinowitz, NY Jobs with Justice, 646-342-3469

63% OF IDAs GIVE TO CORPORATE TAX BREAK RECIPIENTS WHO CUT JOBS, ADVOCATES CALL FOR REFORMS

Labor and Community Groups from Across State Gather in Albany, Release Report

Albany, NY: Today members of the NYS Initiative for Development Accountability released a report on the state’s Industrial Development Agencies, finding that 63% of IDA gave assistance to businesses that actually cut jobs. The report included the top ten job losers that had received IDA funding in 2004.

The state-wide coalition released the report to shed light on some of the serious inefficiencies of IDAs across New York. “IDAs are useful and important to local development,” said Adrianne Shropshire, Executive Director of NY Jobs with Justice, “But this study shows that there are widespread problems with the IDA system and that in many cases, IDAs are not doing the work to economically strengthen our communities.”

The report, titled “Getting Our Money’s Worth: Are Businesses Getting Tax Breaks to Cut Jobs?” determined that 63% of the IDAs that had enough complete data to analyze gave assistance to businesses that actually cut jobs between the time they started getting assistance and 2004. In almost 25% of the IDAs, at least 20% of the companies receiving assistance cut jobs. And seven IDAs had overall job loss in 2003 or 2004.

Included in the analysis were profiles on IDA businesses that pay low wages and provide poor benefits to their workers. CINTAS, an industrial laundry service, has received over $400,000 in tax exemptions from IDAs over the past three years and yet the company pays its workers wages as low as $8.50 to $9.50 an hour. "IDAs should be promoting economic development by helping responsible businesses create good jobs that pay living wages and offer affordable healthcare,” said Wilfredo Larancuent of UNITE-HERE!, “Instead, some IDAs give tax breaks to companies like Cintas, whose workers often cannot afford healthcare for their children and has a documented record of breaking labor laws. The Legislature should reform IDA laws so that New Yorkers’ hard earned tax dollars do not subsidize scofflaw companies like Cintas."

Kevin Doyle, Executive Vice President of Service Employees International Union Local 32BJ spoke to the problem of building service workers at IDA-assisted projects being paid poverty wages. J.P. Morgan Chase in New York City is cited as high-profile example of this, getting hundreds of millions of dollars in subsidies while the security officers guarding its buildings are paid as little as $8 per hour. “If J.P. Morgan is to continue receiving millions of dollars in public assistance, they should be required to give back to the public by making sure all their workers, including security officers, receive a living wage,” said Local 32BJ Executive Vice President Kevin Doyle.

Another issue raised by advocates was the growing problem of non-local contractors and workers hired to do construction on IDA projects. “Local tax dollars should be used to create work for local contractors and residents,” said Paul Sirianni of the Ironworkers District Council, “People here desperately need work and IDAs should put local residents first when it comes to IDA jobs.” IDA projects such as Family Dollar Distribution and Lafarge were constructed at least partly by out of state contractors who often times brought in non-local labor.

The release of the report came on the day of the NYS Initiative for Accountable Development Lobby Day in Albany. Following the press conference, dozens of representatives from different community and labor groups from across the state—including Rochester, Westchester County, the Mid-Hudson Region, Long Island, and New York City— met with their elected representatives to push for IDA reform. Participating groups included New York Jobs with Justice, Hunger Action Network of New York, the AFL-CIO, SEIU Local 32BJ, Ironworkers District Council, Good Jobs New York, UNITE-HERE!, Mason Tenders District Council, Metro Justice, and United Food and Commercial Workers.

“We’ve all come together in Albany to show our elected officials that the problems with IDAs are not isolated or restricted to certain parts of the state,” said Jon Greenbaum of Metro Justice of Rochester, “Communities all over New York, from Buffalo to Long Island, are having the same issues with IDAs around job creation, transparency, and wage levels. That’s why we are fighting for across the board reform at the state level.”

Portions of the law governing Industrial Development Agencies across the state are set to expire in July, giving the Assembly and Senate an opportunity to improve the system. Bi-partisan legislation that would implement significant reforms to IDAs (S. 7391 and A. 10787) has already been introduced in both houses by Senator Maziarz (R, Newfane) and Assembly Member Sweeney (D, LI).

“We will continue to build pressure on the Senate and Assembly to pass these reforms,” said Mark Dunlea, Associate Director of Hunger Action Network of New York, “This is the perfect time to push these changes through the legislature and we hope that elected officials seize this great opportunity.”

Media Release - April 24, 2006


Contacts: 
      Adam Tabelski, Senator George Maziarz, 716-731-8740
      Steve Liss, Assembly Member Bob Sweeney, 518-455-5787
      Michael Rabinowitz, NY Jobs with Justice, 646-342-3469 
      Mark Dunlea, Hunger Action Network, 518 434-7371, ext 1#
      Matt Nerzig, SEIU 32BJ, 212-539-2882 or 917-584-0787

SENATOR MAZIARZ AND ASSEMBLYMAN SWEENEY INTRODUCE IDA REFORM LEGISLATION

Bi-Partisan Group of Legislators to Announce Introduction of Two House Bill That Would Require Companies that Get Tax Breaks from Industrial Development Agencies to Live Up to Their Promises

Albany, NY: Senate Labor Committee Chair George D. Maziarz and Assembly Local Governments Committee Chair Robert K. Sweeney were flanked by community, environmental and labor leaders from around the state, as they announced the introduction of legislation to reform Industrial Development Agencies in preparation for upcoming negotiations over provisions of the IDA law that expire in July. The more than 100 IDAs statewide provide hundreds of millions of dollars a year in tax exempt financing, property and sales tax breaks in order to spur economic development. According to the legislators and the advocates, IDAs need to be more accountable to taxpayers, provide greater transparency and openness in IDA proceedings, comply with environmental and labor laws and provide assistance only to companies that will pay decent wages.

“Companies should not be getting tax breaks to create jobs that pay so little that the people who get the jobs are eligible for public programs like Medicaid or food stamps,” said Senate Labor Committee Chair George D. Maziarz (R-Newfane), sponsor of the legislation in the Senate. “When we give tax breaks, or other subsidies, we should make sure our communities are benefiting from them.” Portions of the law governing Industrial Development Agencies across the state are set to expire in July, giving the Assembly and Senate an opportunity to reform the system so that it operates efficiently. “When used right, IDAs are important economic development tools,” said Assembly Local Government Committee Chair Robert Sweeney (D-Lindenhurst), sponsor of the legislation in the Assembly. “We have a real opportunity this year to make common sense reforms that will make sure communities benefit from IDA assistance.”

Some IDAs require companies that receive assistance to pay taxpayers back if they do not create the jobs they promise. But many IDAs do not have the requirements, called recapture provisions or “claw backs.” The Maziarz-Sweeney legislation will require that claw backs be included in all IDA contracts.

“Our position is pretty simple,” explained Ed Donnelly, Legislative Director of the New York State AFL-CIO. “If the companies don’t create the jobs they promise, taxpayers should get their money back. When hardworking New Yorkers don't do their job well, they get fired. Why should companies that get tax breaks be rewarded for failing to meet their commitments?”

“IDAs should be promoting economic development by helping responsible businesses create good jobs that pay living wages and offer affordable healthcare,” said Wilfredo Larancuent, International Vice President of UNITE HERE. “Instead, some IDAs give tax breaks to companies whose workers often cannot afford healthcare for their children and which has a documented record of breaking labor laws. The Legislature should reform IDA laws so that New Yorkers’ hard-earned tax dollars do not subsidize scofflaw companies."

"Companies benefiting from millions of dollars in tax breaks should pay their workers decent wages," said Kevin Doyle, Executive Vice President of Local 32BJ. "Because the public is paying for these corporate tax breaks, the public has a right to see that these companies provide decent jobs to the community."

Although IDAs are created by state law, they operate locally, at the county, town or village level. Unfortunately, there is often little public awareness of an IDA’s activities.

“Public hearings are currently required on large projects and on projects that deviate from an IDA's 'uniform tax exemption policy.' But those hearings come at the end of the review process and right before final adoption. For public hearings to be really useful, they have to be held earlier – well before a project is a done deal,” said Frank Mauro, Executive Director of the Fiscal Policy Institute. “We also think that any company that wants public assistance should be required to provide the IDA with an easy-to-read analysis of the project's costs and benefits (to taxpayers and to the economy as a whole), and that those reports should be made available to the public without having to file a Freedom of Information request."

“If IDAs are going to really benefit the local communities, then taxpayers and their elected officials need to be able to effectively oversee what they are doing," said Sam Williams, Political Director of UAW Region 9.

Senator Maziarz and Assemblyman Sweeney said that they are working with Local coalitions throughout the state organizing rallies, and collecting postcards to send to elected officials to urge IDA reform.

“The Senate and Assembly need to listen to what hard-working taxpayers around the state are saying and implement these urgent reforms before the end of session,” commented Adrianne Shropshire, Executive Director of NY Jobs with Justice, which is spearheading the Initiative for Development Accountability, a statewide coalition organizing for IDA reform.

Senator Maziarz and Assemblyman Sweeney expressed optimism that the legislation would be addressed before the end of this Session.

Media Release - April 17, 2006


Contacts: 
      Michael Rabinowitz, NY Jobs with Justice, 646-342-3469 
      Duncan MacRae, Westchester-Putnam CLC, 914-536-3255 
      Kate Ferranti, SEIU Local 32BJ, 917-968-7853

Taxpayers Call for Efficient Use of Tax Dollars on “Tax Day”

Westchester County Community and Labor Groups Announce Launch of Local Campaign to Call on Albany to Reform Industrial Development Agencies

Yonkers, NY: On April 17th, as taxpayers across the country were filing into post offices to send in their tax returns, Westchester community and labor organizations came together to highlight corporate tax breaks and how they are often abused by Industrial Development Agencies (IDAs) at the expense of local residents.

At a press conference in front of the downtown Yonkers Post Office, representatives from the Hunger Action Network of New York State, Mt. Vernon United Tenants, the Westchester-Putnam Central Labor Council, Service Employees International Union Local 32 BJ, and New York Jobs with Justice laid out their plans to make sure the State Senate and Assembly pass reforms that would make sure that IDAs, which give almost $400 million in tax breaks across the state each year, run more efficiently and responsibly.

“Right now, hardworking taxpayers are taking responsibility and paying their taxes while some corporations and businesses that get IDA tax breaks are not. IDA projects should create good jobs that come with decent wages and health care benefits, because good jobs provide the backbone for strong families and healthy communities,” said Tony Castiglione, a 32BJ SEIU member and superintendent in Yonkers. “We encourage taxpayers to join the call for reform of the IDA system to ensure corporations and businesses that receive IDA assistance are held accountable.”

The NYS Initiative for Development Accountability wants IDAs to make sure that tax breaks only go to businesses that create quality living wage jobs for local residents. “If we, the residents and taxpayers of this community, are giving these businesses tax breaks then we should see some benefits for that sacrifice,” said Dennis Hanratty of Mt. Vernon United Tenants, “We should see living wage jobs for residents and a place for us to participate in the economic development process. There is real need for good jobs in this county.”

Often, though, IDAs give tax breaks to companies that do not hire locally, pay substandard wages, or fail to uphold their job creation commitments. Paul Ryan, President of the Westchester-Putnam Central Labor Council described the controversial Lafarge project in Buchanan which received substantial IDA tax breaks and is using non-local labor. “We cannot afford to have more projects like Lafarge plant, where tax breaks are given to hire non-local contractors who use imported labor and pay substandard wages,” commented Ryan, “This is why we are calling on the County Legislature, State Senate, and State Assembly to reform our IDAs and make sure they are not undercutting working conditions in this county.”

Portions of the law governing Industrial Development Agencies across the state are set to expire in July, giving the Assembly and Senate an opportunity to reform the system so that it operates efficiently. The coalition expects bi-partisan legislation to be introduced in the Assembly and Senate in the next few weeks.

“The State Senate and Assembly have a great chance right now to fix not only the Yonkers and Westchester IDAs, but IDAs across the state with this legislation,” commented Michael Rabinowitz of NY Jobs with Justice, “They should take seriously this opportunity to make IDAs more efficient and push for reforms that will have a real and concrete impact on working people all over New York.”

Media Release - April 11, 2006


Contacts: 
      Hector Rodriguez, Ulster County Legislator, 845-401-2000
      Jen Fuentes, Hudson-Valley Area Labor Federation, 845.567.7760 
            or 845.527.5554
      Michael Rabinowitz, NY Jobs with Justice, 646-342-3469

ULSTER COUNTY LEGISLATURE CALLS ON NEW YORK STATE LEGISLATURE TO REFORM INDUSTRIAL DEVELOPMENT AGENCIES

The Ulster County Legislature passed a resolution today sponsored by Economic Development Committee Chair Hector Rodriguez (D-I-W, New Paltz) calling on state legislators to take action this year to reform Industrial Development Agencies (IDAs) across New York so that they operate efficiently. IDAs give out almost $400 million in tax breaks every year in order to spur economic development and create jobs. The resolution urges state officials to make sure that projects that get IDA assistance pay decent wages, hire locally and give a portion of the money back if they do not meet their commitments. The resolution also calls on the state to implement transparency standards, so that communities and taxpayers can make sure that IDAs are operating efficiently.

“We passed this resolution to send the message to Albany that we need to reform Industrial Development Agencies to make sure they are working for local communities,” said Legislator Hector Rodriguez. “Here in Ulster County we have already made sure our IDA has wage standards for construction work and diverse representation on its board. We want to see these same positive changes in other IDAs across the state.”

IDAs are the main local economic development tool, giving out tax breaks and issuing low-interest bonds in order to retain and expand local businesses and bring in new businesses. Currently there are no standards in place to ensure that these companies are creating quality jobs for local residents. Last year, IDAs gave out over $400 million in tax breaks to companies but many companies did not follow through on their job creation commitment or created low-wage jobs with limited benefits.

“IDAs should be open and transparent and local residents should have a voice in how economic development occurs in their towns and cities,” said Jen Fuentes, coordinator of the Hudson Valley Area Labor Federation and labor representative on the Ulster County IDA, “And since IDAs give away our money, they should make sure that the companies that get assistance follow basic labor, environmental, and community standards.”

Portions of the law governing Industrial Development Agencies across the state are set to expire in July, giving the Assembly and Senate an opportunity to reform the system so that it operates efficiently. A state-wide coalition called New York Initiative for Development Accountability which includes community organizations from across the state, New York Jobs with Justice, the AFL-CIO, SEIU Local 32BJ, Ironworkers District Council, Sierra Club, Working Families Party, and Fiscal Policy Institute is calling on state officials to seize this opportunity.

“The Assembly and the Senate have a great opportunity right now to make sure our tax dollars are being used responsibly,” commented Adrianne Shropshire, Executive Director of New York Jobs with Justice. “Passing these reforms would ensure that residents get something back for investing their hard-earned tax dollars into these businesses.”

The Ulster County resolution comes one month after the Westchester County Legislature introduced a resolution urging their local IDA to hire union contractors that pay prevailing wages. Also, many counties across state, including Erie, are moving similar resolutions in support of state IDA reform through their county legislatures.

Media Release - June 24, 2005


Contacts: 
      Michael Rabinowitz, 646.342.3469 (c)

Senate and Assembly Pass Short IDA Extender;

IDA Reform on Agenda for Next Year

On Thursday, the Assembly and the Senate voted to extend for one year the sections of NYS’ Industrial Development Agency Legislation (Article 18a of the General Municipal Law) that were set to sunset on July 1 and 2, 2005. Industrial Development Agencies are designed to provide subsidies at the local level to attract or retain businesses in communities across the state. The Senate had proposed making the sections permanent while the Assembly had advanced reforms of the Industrial Development Agencies that would have made them operate more efficiently and transparently, allowing more community input.

“I am happy that working cooperatively with the Senate we were able to make progress towards needed reforms for this program. The extender allows time to complete the negotiations while ensuring that important local projects may proceed,” said Assembly Member Robert Sweeney, Chair of the Assembly Local Government Committee and the sponsor of the one-year extender and the legislation advanced by the Assembly during negotiations. Reform advocates claim that communities need the power to ensure that state and local tax dollars are not given to favored businesses at the expense of other businesses with which they compete, working families, and the environment. “The one-year extender means that communities throughout the state can become involved in the debate about how economic development resources should be distributed. The Legislature’s action will give New Yorkers the opportunity to pursue much-needed IDA reforms in the coming year,” said Stephanie Greenwood, Research Analyst for Good Jobs New York.

An ad-hoc coalition of groups including New York City Jobs with Justice, the NYS AFL-CIO, the Working Families Party, the Hunger Action Network of NYS, SENSES, Fiscal Policy Institute, the Better Choice Budget Coalition, Citizens Campaign for the Environment, Good Jobs New York and Metro Justice was calling for a set of reforms that would allow IDAs to achieve their purpose of advancing job opportunities for New Yorkers, advancing New Yorkers’ health, general prosperity and economic welfare, and improving our prosperity and standard of living.

“We will continue organizing on this issue for the next year,” said Adrianne Shropshire, Executive Director of New York City Jobs with Justice. “Talking to people across the state has made it clear that problem IDAs are everywhere; no part of the state has a monopoly on them.”

The specific principles advocated by the coalition include: ensuring broader oversight and coordination; developing Community Impact Reports (CIRs); mandating basic standards like prevailing wage; improving reporting requirements; requiring enforceable clawback penalties; increasing the effectiveness of IDA public hearings; ensuring that IDAs are run transparently; and establishing meaningful penalties for IDAs that violate anti-piracy provisions.

Assembly Member Richard Brodsky, Chair of the Corporations, Authorities and Commissions Committee who has put forth a bill that would meet many of these principles said, “In light of this extender, we must not lose sight of reforming IDAs. I will continue to forward reform measures to bring transparency, accountability, efficiency and local control to IDAs.”

Media Release - June 15, 2005


Contacts: 
      Frank Mauro, Fiscal Policy Institute, 518-786-3156
      Michael Rabinowitz, Jobs With Justice, 646-342-3469
      Ronald Deutsch, SENSES, 518-463-5576
      Jon Greenbaum, Metro Justice 585-325-2560

Industrial Development Agencies Law Due to Sunset on 6/30/05

Groups Call Upon Legislature and Governor to Make Real Changes That Will Make The Program More Accountable, Transparent and Less Corrupt!

ALBANY (June 15, 2005) -- Over 100 community, religious, education, health care, labor and human services organizations from throughout New York State have endorsed a joint statement of principles to reform the state’s Industrial Development Agency laws. The joint statement was issued today at a press conference at the Legislative Office Building in Albany.

Portions of NYS’ Industrial Development Agency Legislation (Article 18a of the General Municipal Law) sunset on July 1 and 2, 2005. Industrial Development Agencies are designed to provide subsidies at the local level to attract or retain businesses in communities across the state.

The groups urged that the Legislature use the following 8 principles in reauthorizing the law:

  • Ensuring Broader Oversight and Coordination
  • Developing Community Impact Reports (CIRs)
  • Mandating Basic Standards
  • Improving Reporting Requirements
  • Requiring Enforceable Clawback Penalties
  • Increasing the Effectiveness of IDA Public Hearings
  • Ensuring that IDAs are run transparently
  • Establishing meaningful penalties for IDAs that violate anti-piracy provisions

“We need to ensure that our tax dollars are being used to create quality jobs that benefit local residents and do not put our small businesses at an economic disadvantage with their larger, more politically-connected, big-business competitors,” stated Ron Deutsch of SENSES. “We need to eliminate the corruption in this program by making sure that local IDA Boards are more representative of the communities they serve and that local IDAs fund projects that pay a living or prevailing wage, provide employment benefits, maintain high worker retention and full-time employment ratios, hire people from the local community, and provide job training.”

Adrianne Shropshire of New York City Jobs With Justice (NYC JWJ) noted that in order to hold these local IDAs accountable they should develop Community Impact Reports for each project that detail the quality of the jobs created or retained, the effect on housing in the area, the effect on other businesses, the effect on open space and the effect on infrastructure, such as transportation, schools and water and sewers. “Communities should have the information needed to decide whether a development project is really in the best interest of the community. Public money should not go to projects that don’t benefit the people who live in the area.”

Metro Justice, community-based peace and justice organization in Rochester with close to 1,000 dues paying members, has been tracking the activity of the County of Monroe Industrial Development Agency (COMIDA) for the past 8 years. “In Monroe County we have seen our local IDA (COMIDA) degenerate into a feeding trough of corporate welfare for well-connected businesses,” stated Barbara Orsino, a member of Metro Justice. “At COMIDA meetings we've seen the appointees to the COMIDA board give tax breaks and subsidies for the purchase of company vehicles, telephone and computer equipment to restaurants, law firms, tennis clubs and financial service firms, all of which simply move jobs from one local business to another. Among the most egregious actions of corporate welfare have been recent IDA grants to the Sutherland Corporation, a business that outsources jobs to overseas firms. We need to reform this program to remove the cronyism and to stop putting our communities small businesses at a competitive disadvantage with larger IDA sponsored businesses. You also know a program like this has major conflict of interest issues when the lawyer for COMIDA is also the same lawyer representing the corporations applying for the subsidies.”

"IDAs are in desperate need of reform," said William Cooke of Citizens Campaign for the Environment. "These agencies are charged with handing out public funds and IDAs must be more accountable to the public." "The State Legislature has the opportunity to address many of the IDAs biggest abuses and they should," Cooke concluded.

Frank Mauro, Executive Director of the Fiscal Policy Institute, insisted the law should be reformed to establishing meaningful penalties for IDAs that violate Article 18-A’s anti-piracy provisions. Mr. Mauro cited a recent Court of Appeals decision In the Matter of Main Seneca Corporation v. Town of Amherst Industrial Development Agency; BDO Seidman, LLP, where the court held that the anti-piracy provisions of Article 18-A had been violated by the Town of Amherst IDA and upheld the penalty imposed by the lower court, that Uniland Partners repay the portion of the taxes that it had avoided in regard to the facilities occupied by the firm (BBO Seidman) that the Amherst IDA had illegally pirated from the City of Buffalo. Mauro stated that, “It seems perverse that the Town of Amherst, on whose behalf the Amherst IDA was established and on whose behalf it operates should get a bonanza (the back tax payments) rather than a penalty. Amherst got the business which Buffalo lost and it, after the fact, got back the taxes that it had offered as an inducement to attract the business. It seems that for the law’s anti-piracy provision to be meaningful, a penalty should be assessed on the IDA not the business, or at least on the IDA in addition to the business. The legislature should amend the law to provide for a more appropriate penalty in future cases of this type.”

“Our research revealed that many deals negotiated by the New York City IDA gave millions of dollars to some of the world’s wealthiest corporations without creating the jobs that were promised. Incorporating better transparency and reporting standards into IDAs statewide would give New Yorkers a way to make sure that good jobs are being created in exchange for subsidies,” said Stephanie Greenwood of Good Jobs New York.