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Ron Deutsch, executive director of New York for Fiscal Fairness, talks about reform of industrial development agencies during a meeting with the Press-Republican Editorial Board in Plattsburgh. (Staff Photo/Rob Fountain)

Published June 20, 2007 11:22 am - Industrial development agencies need to be more accountable to taxpayers, statewide group says.

Push on for reform of IDAs


By JOE LOTEMPLIO
Staff Writer

PLATTSBURGH — A watchdog for industrial development agencies says the programs are failing in many areas of the state and drastic changes are needed.

“We think IDAs are a worthwhile program, but they are in need of some repair,” Ronald Deutsch, executive director of New Yorkers for Fiscal Fairness, told the Press-Republican Editorial Board recently.

IDAs help recruit businesses to the area basically by offering tax incentives in exchange for job creation.

But Deutsch says too often the companies do not create the number of jobs they say they will as they continue to enjoy tax breaks.

“And sometimes they wind up cutting jobs,” Deutsch said.

DATA CALLED LIMITED

In Clinton County, more than $3.5 million worth of tax breaks is handed out by the IDA each year, according to a study done by Jobs with Justice.

About half of the IDA projects in Clinton, Essex and Franklin counties do not provide enough information about their deals, Deutsch said, which is a common problem.

His group thinks IDAs should be required to provide detailed information about deals they make with companies and make it available to the public upon demand.

“They have notices for public hearings in the legal section, and hardly anybody notices,” Deutsch said.

REFORMS SUGGESTED

The state should also require companies who have agreements with IDAs to give back some of the tax-break benefits they’ve received if they fail to create the specified number of jobs.

Deutsch said companies shouldn’t be allowed to create low-paying jobs if they receive IDA assistance.



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