Good Jobs First Subsidy News
Greg LeRoy, executive director of Good Jobs First, told the Orlando Sentinel the incentives were "worse than a zero-sum game. We call this interstate job fraud. At the end of the day, you've also got less revenue available for public services."
According to the latest update by the NY State Comptroller, there are 109 IDAs overseeing over 4,000 projects that exempt almost $800 million in taxes, and that’s after accounting for PILOTs. As property taxes make up the lion’s share of educational revenues, abatements can seriously hurt school districts.
Why, then, do NY’s school boards seem so passive about chunks of revenues getting carved out of their budgets every year to pay for corporate tax breaks?
West Virginia Gov. Jim Justice has tried for years to expand the state's corporate subsidy offerings, only to see lawmakers cut the funds from final spending plans. But as the influx of federal pandemic money flowed into the state, Justice saw an opportunity.
The result: a $30 million "deal-closing fund" that has no strings or rules over how the money is spent.
Chapter 313, known for its place in the state tax code, costs more than $200,000 per job, mostly benefiting the oil and gas industry.
But there’s more to the story: That burdensome cost falls hardest on school districts with high populations of Black and Latino students. Because of the racialized nature of poverty in Texas, the subsidies enjoyed by huge corporations fall heaviest on students of color.
New York City's Economic Development Corporation has promised a lot, as these agencies often do, but what it delivers falls short. The city needs a new approach that doesn't involve a large transfer of public money from hard-working residents to wealthy developers, Jacobin argues.