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Why They Hide Stuff

by: phillip anderson

Sun Mar 18, 2007 at 11:43:47 AM EDT


There is a very good and perfectly obvious reason that the state often must be sued to release information that should be public record. In fact, in almost any other state in the Union, this wouldn't even be in question. Why do they fight so hard to hide this stuff? Because that data almost always paints a rather unflattering picture, a picture that looks corrupt and inefficient. The Syracuse Post-Standard was forced to sue the state to get data about New York state's "Empire Zones" and now the Rochester Democrat and Chronicle takes a look at what that data reveals. It's a must read.

Benefits of Empire Zone tax breaks in question
State hands out millions in credits, but what's the return?

Owners of The Mall at Greece Ridge paid $99,398 in wages while claiming $3.3 million in state tax credits in 2005 - topping off a three-year stretch in which tax breaks exceeded wages by $8.8 million.

At the Corporate Woods of Brighton office park, meanwhile, tax breaks surpassed wages by more than $900,000 in 2005.

In all, nearly one in three suburban Monroe County businesses that received incentives through the state's Empire Zone economic development program in 2005 got more in state tax credits than they paid in total wages, according to a Democrat and Chronicle analysis of state records.

That ratio is second statewide only to Yonkers, where two in every five businesses received similar benefits.

"It may be oversimplifying, but the numbers don't lie," said Assemblyman Joseph Morelle, D-Irondequoit. "If you receive credits more than your payroll, then it's fair to say the state has covered your payroll.

"The question then becomes whether that is legitimate public policy, are these strategic industries?"

...

The court-ordered disclosure of the Empire Zone records came after the state lost a court battle with The Post Standard in Syracuse, which sued for the data. So far, records have been released for 2003-05. Data for 2006 likely will not be ready until next fall, officials said.

Go read the whole thing...

phillip anderson :: Why They Hide Stuff
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$100K in wages for (4.00 / 2)
$3.3 million in tax breaks. Nice work if you can get it.

TODAY is day one. It always is.

We have more info on that issue (4.00 / 2)
DMI did an event on economic development subsidies and how localities can actually legislate so that they aren't abused and turned into wasted money and pork.

There is a law in Minnesota that put in real accountability into the process of economic development incentives. We need that here in NYS.

you can watch video or listen to audio about our event here:
http://www.drummajor...

www.dmiblog.com


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