POLITICO Pro: New York’s $10B in business subsidies draws new scrutiny as budget deal nears
A tech plant in Genesee County received $270 million in state dollars aimed to spark economic development — yet only 68 New Yorkers were hired from the project, amounting to a payout of $4 million per job.
A $1 billion investment in Tesla in Buffalo aimed to grow employment actually lowered tech and manufacturing hiring in the area. Where did the money go? Developers used it to fund other corporations and, in some cases, to enrich themselves in the scandal-plagued Buffalo Billion initiatives that landed several developers in jail.
The famous “Plug Power” and “Buffalo Billion” economic development failures were just two of New York’s “Dirty Dozen,” a new report Wedbesday by the American Economic Liberties Project found.
The report detailed the state’s worst economic development payouts in recent years, saying New York spends $10 billion annually on business incentives, often with little positive return.
The report comes ahead of state budget negotiations for the fiscal year that starts April 1 — prompting the group and their supporters to urge the state to revamp economic development funding and criticized Gov. Kathy Hochul’s plans for an additional $1.8 billion in economic development incentives to spur business development, particularly in upstate.