Washington, D.C. — Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project, testified at a New York State Joint Legislative Budget Hearing today, encouraging members of the legislature to reform New York’s economic development system, which currently serves to benefit massive corporations and harms local communities and businesses.

“New York government, at all levels, is one of the most prolific users of economic development incentives, doling out billions of dollars every year between state incentives and incentives at the local level,” said Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project, in his prepared testimony. “These incentives increase corruption, siphon resources away from valuable government services that increase quality of life, worsen income inequality, and disadvantage the local businesses that help communities thrive. … It’s time for a complete overhaul of New York’s economic development system to focus it on what communities need most: The things that build quality of life for workers and make it possible to start small, local businesses that support local communities and build local economic resiliency.”

In his testimony, Garofalo outlined key policy recommendations to improve economic development, including: 

• Passing S1196/A9092, sponsored by Senator Gianaris and Assembly Member Solages, to ban nondisclosure agreements in economic development deals;
• Placing a hard cap on subsidies, such as the $6,000 per job created proposed by Asmb. Kim in A3077;
• Creating a real Database of Deals, with clear metrics, so local residents and businesses can see exactly what is being spent in their name; and 
• Banning the use of subsidies to build out warehousing and logistics networks.

Read Pat Garofalo’s written testimony here.

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.