Database of NYC's biggest giveaways What they are saying about corporate giveaways GJNY is grateful
for the support of our funders:
Good Jobs New York |
|
|
|
For publication on and after October 11, 2000 Contact: Alice Meaker 212-414-9394 Now Available, For the First Time Ever! Good Jobs New York (GJNY) has compiled and made available to the public an extensive database of the costliest "retention" deals offered to New York City corporations by the state and city governments since 1987. The database includes detailed information on 62 deals totaling $2.9 billion. Many of the deals were worth tens and even hundreds of millions of dollars apiece. In theory, development agencies provide these subsidy packages to keep the companies involved from leaving New York City, but the database includes statements from executives of a number of the firms acknowledging that they had no intention of moving out of the city. The release of the database - available online at www.goodjobsny.org - marks the first time information on these deals has been publicly and conveniently available. Since 1994 alone, New York City and New York state development agencies have completed or announced over $2 billion in subsidy packages. The release of the database comes at a critical time, as the New York City and New York state governments move to finalize a $1 billion subsidy package with the New York Stock Exchange. This package consists mostly of outright grants to build a new trading floor for the Exchange. Critics challenge the need for the huge package, questioning the likelihood of the Exchange actually leaving the city and the need for a mammoth new trading facility in the face of the trend toward online trading. The database includes the amount of each subsidy package and, when available, information on the kinds of subsidies (sales tax exemptions, property tax abatements, discounted power, cash grants, etc.) involved. Background information on each company, whether the company received more than one round of subsidies, and the circumstances surrounding each deal are also included. Perhaps most importantly, the database details the conditions agreed to by the company (job creation, remaining in the city for a minimum number of years, etc.) when GJNY was able to obtain this information. The database is also remarkable for what it lacks. For many deals, information about the conditions agreed to by companies has not been published and is not included in the database. Without this information, there is no way for taxpayers to determine if the deals are cost-effective or if the companies are living up to the commitments made in exchange for subsidies. Good Jobs New York is attempting to obtain more information about the terms of these packages from city and state development agencies under the Freedom of Information Law. Additional details will be added to the database as they become available, as will information on refusals to provide the requested information. Unlike New York City and New York state, numerous states and cities around the country require corporations to report on the number and wage levels of jobs created or retained - and to return an appropriate portion of their subsidies when they fail to live up to their job creation and job retention promises. For more information about GJNY, visit www.goodjobsny.org Or contact: Alice Meaker, Project Director Good Jobs New York Good Jobs First is a national leader in providing timely, accurate information to the public, the media, public officials and economic development professionals on best practices in state and local job subsidies. GJF works with a broad spectrum of organizations as they seek to ensure that subsidized businesses are held accountable for family-wage jobs and other effective results. For more information visit www.goodjobsfirst.org The Fiscal Policy Institute is a nonpartisan research and education organization focusing on New York's tax, budget, economic and related public policy issues. Founded in 1991, FPI's work is intended to further the development and implementation of public policies that create a strong economy in which prosperity is broadly shared by all New Yorkers. For more information visit www.fiscalpolicy.org |
||
|
Updated January 2, 2001 |
||