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June 3, 2008
Giving Away New York
NY Sun, Op-Ed
by Betsy McCaughey
The former Lieutenant Governor (not the one currently residing in the Governor's Mansion) takes the Empire State Development Corporation to task for acting like a slush fund for New York's most politically connected businesses.
Governor Paterson is reportedly having trouble finding a distinguished business leader to head the Empire State Development Corporation. That's not surprising. The agency's giveaways are an embarrassment.
The ESDC selectively dispenses tax relief and other financial benefits to companies in regions that need economic development under its Empire Zone program. It also gives grants of between several hundred thousands of dollars and several millions of dollars to companies for plant expansions, capital equipment, and other projects, all for the nominal purpose of keeping and creating jobs.
Here's the hitch: Only 2% of businesses in the state are beneficiaries. Which businesses? Too often, those with political connections.
...For most of the current decade tax revenues skyrocketed, but during these boom years New York's governors, Republicans and Democrats alike, failed to pay down debt and slim down future obligations. The result is that the state faces a fiscal crisis.
The Empire State Development Corporation is not the answer to this crisis. It is a costly part of the problem. If knowledgeable business leaders have no interest in heading the agency, there's a reason. Now is the time to redefine its mission.
The agency should advocate for tax and regulatory relief for all businesses and educate state lawmakers on the need for these changes. To restore the agency's credibility and to spare taxpayers an unnecessary burden, the giveaways must stop.
Posted by eric at June 3, 2008 10:46 AM