New York’s industrial development agencies created fewer jobs in fiscal 2007 than in fiscal 2006, but at a higher cost, according to an annual report released last week by state Comptroller Thomas DiNapoli.
“Costs are up, borrowing is up, but the number of jobs is down,” DiNapoli said in a press release. “We need to evaluate the effectiveness of IDAs to make sure taxpayers are getting the right bang for their IDA bucks.”
IDA projects created 226,602 jobs in fiscal 2007, a drop of 2,323 compared to the previous year. However, the cost per job increased to $4,527 from $4,195, according to the report.
Outstanding debt issued by IDAs increased by $2.5 billion to $22 billion at the end of fiscal 2007. The net cost of tax exemptions not related to debt increased $137 million to $593 million.
IDAs reported that in fiscal 2007, they supported 4,130 projects totaling nearly $61 billion with tax exemptions and tax-exempt financing compared to 3,813 projects worth $41 billion the year before. However, most of the increased worth of the projects, some $13.1 billion, is attributed to better reporting requirements that were implemented in November 2007, the report said.
“The new reporting requirements pushed by my office are giving a clearer picture of what IDAs are doing with taxpayer dollars,” DiNapoli said.
The agencies are required by law to file audited financial reports to the comptroller’s office. The office increased oversight of the state’s 115 IDAs after it found that data for fiscal 2006 was inconsistent and incomplete.
In 2008, the comptroller’s office suspended nine IDAs for failing to file reports.
