Spotlight on Economic Development Reform in New York State

The economy is a top concern for voters across the country and in New York State. That’s why, like many states, New York is investing millions of dollars to grow its businesses and strong workforce.

But what is the state’s return on investment and what degree of control is exercised over economic development subsidies?

State Senator James Skoufis joins JoDee Kenney to discuss these issues.

Skoufis says industrial development authorities, or IDAs, exist in every county in the state. He says these agencies are responsible for selectively granting large property tax breaks to almost exclusively very large companies that seek to locate in the state or threaten to leave it in order to keep them in New York .

“And make no mistake, in some cases these incentives are necessary,” Skoufis said. “They are justified and without the tax breaks, businesses would not come here or stay here. But what I found as chairman of the investigative committee, and we did a thorough investigation into the practices of IDA is that most of these IDAs do not do the same due diligence to determine whether the company needs these tax incentives.

Skoufis claims that during budget negotiations he put on the negotiating table a proposal to install a state-appointed monitor within the Orange County IDA comptroller with veto power to act on behalf taxpayers in order to move forward with a tax break that was not in the interest of taxpayers.

“This controller was recently appointed,” he said. “They have a three-year term at the end of which we can reevaluate whether to reopen the term. Additionally, it is important to note that it is not taxpayers footing the bill to pay for this monitor, the IDA pays the expenses associated with this monitor. This.”

You can watch Skoufis’ full interview in the video above. And don’t forget to take a look at the biggest issues affecting Upstate New York, on In Focus – every Sunday. Spectrum News 1.