Editorial
EDITORIAL: Albany should overhaul IDAs
At a time of disturbing 9 percent unemployment in New York, state government should be using every job-creation tool it has. Even better if the tools don't cost anything.
But right now, the legislature can't authorize $2 billion-plus in low-interest bank loans pending for civic projects. The financing is being held hostage to a dispute between business and labor over industrial development agency reform.
Gov. David A. Paterson recently released a "discussion draft" outlining a union-friendly deal. The plan would require businesses to pay the prevailing wage, $16.98 an hour on Long Island, if they receive IDA help. This wage, however, would apply not only to construction, where at least there is a precedent from other government projects, like sports stadiums. It would also obligate many future tenants of the new buildings. Unions understandably want the tenants to pay a living wage. But these conditions threaten to thwart too many projects.
The legislature's first priority should be to overhaul the underperforming IDA system. Lawmakers should add tougher reporting requirements and a "clawback" provision to retrieve tax dollars when businesses fail to create promised jobs. And the 115 IDAs should be consolidated by region. Let's justify whether the jobs created merit these tax breaks before worrying about how well the jobs pay. hN
