May 2015 Posts
A recent report by the Pioneer Institute evaluates the job creation impact of six years of investment in the life sciences industry in Massachusetts under the 2008 Life Sciences Act. The LSA was funded at $1 billion over 10 years; when the program was launched, former Gov. Deval Patrick announced it could create 250,000 jobs, resulting in a cost of $4,000 per position.
An $87 million subsidy package for military contractor Lockheed Martin has sailed through a special legislative session in Arkansas. The package is meant to support the company’s bid for a contract with the federal government to produce military vehicles.
The Start-UP NY economic development program does one thing well: it gets people talking. The one-year-old program started generating headlines from the moment it was announced, in part due to its ambitious – some would say excessive – use of subsidies.
Swedish automaker Volvo has chosen South Carolina over Georgia and North Carolina for its first car-making facility in the United States. A hefty subsidy package of more than $200 million helped the state close the deal.
Risky Business, a new report by New Jersey Policy Perspective, urges the state to improve subsidy accountability and protect taxpayers from bad economic development deals. Such reforms are needed now more than ever as spending on subsidies has sky-rocketed under the Christie administration: $5.1 billion has been awarded since 2010, four times the amount awarded in the previous ten years.