On September 27, Ford Motor Company announced plans to invest $5.6 billion at the Memphis Regional Megasite in Stanton, Tennessee, to build an electric vehicle (EV) assembly and battery plant, jointly with SK Innovation. The facility, dubbed “Blue Oval City” by Ford (in a reference to its corporate logo), is projected to employ 5,800 people as Ford makes its first big foray into EV production. The same week, Ford and SK Innovation revealed plans for two more battery plants in Glendale, Kentucky, south of Louisville, at an estimated cost of $5.8 billion.
We posted a new version of Subsidy Tracker, Good Jobs First’s database of company-specific subsidy awards from state and local governments across the country as well as federal agencies. During this round of updates, we added over 17,000 entries from 112 state and local programs from 28 states. We also updated the federal programs. We also added nine megadeals.
By Margie Manning, August 17, 2015
The Governmental Accounting Standards Board has issued its first-ever rule requiring state and local governments to disclose information about tax abatement agreements.
By Hilary Russ, August 14, 2015
For the first time, state and local U.S. governments will be required to report how much money they lose on corporate tax breaks for economic development projects, according to a new accounting rule issued on Friday.
For decades, state and local governments have issued Comprehensive Annual Financial Reports (CAFRs) that failed to include an important part of their fiscal condition: the extent to which they have forgone revenue by giving economic development tax breaks to businesses. An estimated $70 billion in subsidies are awarded each year in the name of job creation and economic growth.
By Bryan Lowry, July 14, 2015
Kansas handed out tax credits for plugging abandoned oil wells and shooting a movie in the state in 2013, but the state Department of Revenue won’t say how much they were worth or who got them.
On the heels of a terrific NPR-station exposé, the District of Columbia has become the first large U.S. jurisdiction to enact campaign finance reform thanks to job subsidies becoming transparent.
Washington, DC—Despite the District of Columbia embracing four leading best practices, other basic economic development standards and safeguards remain absent.
- failure to set job creation and job quality standards,
- lax reporting on project outcomes,
- failure to enforce existing standards, and
- the need for an online transparency database.
The report is available at:
Despite such shortcomings, experience shows that the District can rapidly change course. For example, recent enhancements raised D.C.’s ranking on job subsidy transparency from dead last to 26th among the states in a 2014 Good Jobs First national report card study.
For many years, we at Good Jobs First have criticized GASB—the Governmental Accounting Standards Board, or “GAZ-bee”— for failing to require state and local governments to disclose economic development subsidy spending in a uniform way.
It appears that’s finally about to change, and if it does, it will be hard to overstate the significance of the news.
Tesla Motor’s shameful subsidy competition for its battery factory is wrapping up to a close in a state known for big gambling. The Nevada Governor’s Office of Economic Development (GOED) announced last week it had assembled a breathtaking package for the proposed “Gigafactory” totaling as much as $1.3