Report: More projects, less jobs

Agencies' efficiency may be assessed
By Cara Matthews, Journal Albany bureau

ALBANY - The number of projects reported by New York's 115 industrial development agencies has grown, but the number of jobs created has declined and the cost per position to taxpayers has grown, a report Thursday by state Comptroller Thomas DiNapoli said.

The findings warrant a closer look, he said, at the effectiveness of the agencies, which attract and expand businesses by offering property, sales and mortgage tax exemptions and low-interest bonds through which sponsors borrow from private investors.

"Costs are up, borrowing is up, but the number of jobs is down," DiNapoli said in a statement. "We need to evaluate the effectiveness of IDAs to make sure taxpayers are getting the right bang for their IDA bucks."

IDAs reported 4,130 projects worth almost $61 billion in 2007, up from 3,813 valued at $41 billion the year before, the report found. But the job count was down by more than 2,000 - from 228,925 to 226,602.

The cumulative cost to taxpayers for jobs created was $4,195 per position in 2006 and $4,527 in 2007, the report said.

The Dutchess County rate came to $1,063, the report said. Ulster County's was $1,816.

Brian McMahon, executive director of the state Economic Development Council, said, "By any measure, an economic development program that invests $4,527 for every job it helps create is an excellent investment for taxpayers." More here.