The Empire State Development Corporation has taken an "unprecedented" step by decertifying 26 companies who took advantage of Empire Zone benefits and failed to live up to their promises of jobs and investment.
The 26 companies notified that the decertification process has begun have not responded to ESD's request for information and have fallen substantially short of the jobs or investment projections made in return for receiving Empire Zone benefits. The companies now have 30 days to request an administrative hearing and, if a hearing is not requested, the company will then be decertified.
"We must ensure that public resources are invested wisely," stated Upstate Empire State Development Chairman Daniel C. Gundersen. "Elected leaders and the citizens of New York state expect that there are accountability measures in place whenever public funds are disbursed. Empire State Development is doing its job today by moving forward with decertification of non-compliant companies."
"The tax benefits Empire Zone companies enjoy come in return for commitments that the companies will invest in the state and create jobs. These reforms demonstrate our resolve to ensure that state tax dollars are spent wisely to achieve the maximum economic development returns to benefit all New Yorkers," said ESDC President Avi Schick.
Here is another interesting fact for you:
The notification is part of a review process that began in July 2007. It is the first time in the program's history that Empire Zone certified companies were informed that they were out of compliance with the jobs or investment projections they made when applying for participation in the Program.
Based on the review of 2006 Business Annual Reports provided by firms in the EZ program, nearly 2,400 businesses have failed to meet at least 60 percent of their goals.
That's right: Close to 2,400 businesses haven't even reached 60 percent of their goals. That is terrible and unacceptable.
Here's what the Syracuse Post-Standard had to say:
Former Gov. Eliot Spitzer made Empire Zone reform a part of his 2008 budget proposal, suggesting that the state could save $50 million by getting rid of the non-productive companies in the program.
Gov. David Paterson and state lawmakers should do the same, while aggressively pursuing the recovery of funds from businesses that have not met the qualifications. To do otherwise is to sanction an ineffective, unproductive, costly program.
Besides, would the state let New Yorkers get tax refunds for money they didn't earn and just let it go once the state Tax Department discovered the error? Hardly.
Reforming the Empire Zones is something that a lot of Democratic candidates should be stressing because Republicans are very much pro-Empire Zones. |
