ALBANY -- An annual report by Comptroller Tom DiNapoli has found "serious questions" over the effectiveness of industrial development agencies, used by municipalities such as Albany and Saratoga County with giving tax breaks and financing to help spur economic development.
"New York has a lot of local economic development entities; developing a regional, coordinated approach is very difficult. We have to fix that," DiNapoli said in a statement after releasing the report in Syracuse. " ... We need to make sure that the tax breaks given for these projects are promoting job retention and growth."
The 115 IDAs in the state supported over 4,500 projects in 2009, providing $1.2 billion in tax breaks. This was offset by $700 million worth of payments in lieu of taxes. In total, IDAs worked with projects worth $73.5 billion in 2009, an increase from the previous year fueled almost entirely by the GlobalFoundries chip fab plant in Malta, worth $4.66 billion.
The Rensselaer County IDA supported other major projects in the area, including the $180 million medical imaging factory run by General Electric as well as a power generation-recycling plant in Rensselaer.
Statewide, IDA-supported projects employed 724,390 full-time equivalent workers in 2009. The report finds IDA projects gained a combined total of 204,172 jobs, which averages out to $2,429 of subsidy per job.
DiNapoli repeated concerns about the growth of local development corporations, which are similar to IDAs in mission but have more lax reporting rules. The report found Albany County has seven IDAs -- putting it in a tie with Westchester County for the most in the state -- and over six locals, including Albany and Colonie.
This is DiNapoli's fourth IDA report.
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