Kudos to the Post-Standard for its June 1st editorial calling for the New York State Legislature not to have a “soft-float” out of the legislative session. The editorial describes many actions our legislators should take before the session ends, highlighting those that won’t further strain the budget. One issue unmentioned that needs action now is reform of the state’s Industrial Development Agencies (IDAs). IDA reform would even save the state money by ensuring that only responsible companies that create good jobs receive taxpayer-funded assistance.
Industrial Development Agencies (IDAs) are a significant source of economic development subsidies at the local and county level, providing tax breaks and cheap financing to companies in return for a commitment to create jobs. But the types of jobs subsidized by IDAs—many of them low-wage— will not generate economic revitalization in our Upstate communities.
A good illustration of how IDAs subsidize low-wage jobs that do not protect local economies is the current expansion of the Carousel Mall. According to organizers with the local Carpenters and Laborers unions, many of the workers building the expansion of the Carousel Mall live out of New York State. Many of the current workers claims not having access to benefits while working on the mall expansion. Under a current bill passed by the State Assembly, wage standards would be instituted for construction and permanent jobs created by subsidized projects in order to ensure that these jobs respect the prevailing rate. Also included in these reforms will be provisions for regional hiring and apprenticeship requirements to ensure that development creates jobs and training opportunities for local workers. Local dollars being used through IDAs should create local jobs for the betterment of local communities.
Central New York needs the kind of economic development that will allow workers to move up career ladders and into the middle class, guarantee healthcare and other benefits for low-wage workers and their families, attract and keep college-educated workers in Upstate communities to create a diversified workforce, and to ensure that workers remain Upstate in the long-term.
It is clear that
Central New Yorkers need good jobs, not just any jobs— and comprehensive
IDA reform is necessary to ensure that we’re not using our limited public
dollars in the name of creating low-quality jobs. The legislature has a golden
opportunity to ensure that communities are using limited public resources
for good jobs. Residents need to call their legislators and tell them that
they should pass IDA reform now and not just have a “soft float”
out of Albany.
Mark Spadafore is the Executive
Director of Syracuse Alliance for a New Economy, and Sadaf Khatri
is the Program Director of New York Jobs with Justice