Washington, D.C. — Today, eight national and New York-based economic justice organizations and the Invest in Our New York coalition released a new report cataloging 12 of New York state’s worst economic development deals, and calling for reinvesting failed corporate subsidies into social programs that would benefit New York communities. Titled “The Dirtiest Dozen: New York’s Worst Economic Development Deals,” the report lays out how New York’s dependence on corporate subsidies has failed the state’s residents, and makes it clear that a complete overhaul of the system is urgently necessary.

“New York’s misguided economic development programs have seen billions of dollars wasted to accommodate the wealthy instead of real job creation to address the needs of working people,” said Senate Deputy Leader Michael Gianaris. “This report highlights the need to reform our state’s economic climate and focus on investing in our most important asset – human capital.” 

“Billions of dollars each year in tax incentives are given to private entities with little to no oversight or accountability,” said Assemblywoman Michaelle C. Solages. “It is time New York reinvests in services that actually create economic development. Now is the time to invest in people.”

“Every year at budget time, legislators in Albany scramble for scraps from the budget table, fighting over a few million dollars here or there to fund excellent and impactful programs with well-documented benefits for their constituents,” said Senator Liz Krueger. “Meanwhile, every year we spend $10 billion on corporate giveaways, choosing winners and losers without the first clue as to what New Yorkers are getting in return. As today’s report shows, it is long past time to completely rethink the notion of economic development in our state.”

“With renewed focus on cleaning up New Yorker’s failed economic development policies and new leadership in the Executive Office, we must take this opportunity to independently audit all of our state’s incentives, cut the egregious waste, offer far more transparency, and promote a new system of economic development that protects taxpayers from poor investments,” said Senator James Skoufis. “It’s high time we finally make unwarranted corporate welfare a thing of the past.”

“It’s clear that New York’s ‘economic development’ system is built on corrupt deals that line the pockets of corporate leaders and do nothing to support New York’s local businesses or communities,” said Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project. “This report showcases some of the most egregious ways New Yorkers were ripped off in recent years, but there are plenty more where these came from. Without significant reforms, New York will subject itself to boondoggle after boondoggle forever. It’s time to stop wasting money on corporate subsidies, and instead invest in real New York people and communities.”

“When a state puts hundreds of millions of dollars, or even billions, into one single project, that is a measure of corruption that we call ‘megadeals,’” said Greg LeRoy, executive director of Good Jobs First. “No state has spent more on megadeals than New York, and for that, upstate ranks with Mississippi for long-term economic stagnation. There can be no turnaround until corruption in all its forms is banned.”

“One has to wonder how many failed programs, scandals, indictments and botched deals it will take for New York to begin to fix our corrupt system of economic development,” said Ron Deutsch of New Yorkers for Fiscal Fairness. “There are a number of long overdue proposals being advanced by the Senate and Assembly that will begin to restore some transparency and accountability to these programs. Developing a database of deals, engaging in a full review of ESD programs, restoring the Comptroller’s audit authority and decoupling from the Opportunity Zones program are proposals that should and must be in the final budget. Anything less is an insult to the taxpayers of New York State.” 

“With affordability at record lows and cost at record highs the last thing we can afford is to continue to waste billions of dollars on a program that only lacks more in transparency than it does effectiveness,” said Charles Khan, Organizing Director at the Strong Economy for All Coalition. “This report should serve as a warning to the Governor and ESDC as they continue to negotiate deals in the dark. New York’s economic development program has proven to be excellent at filling the pockets of wealthy corporations, and developers, while an abject failure at keeping its promises to the public and creating sustainable good jobs. It’s time to end the corporate giveaways and put the money to good use.”

“Our state works well for industries like horse-racing, propping it up to the tune of hundreds of millions of dollars in subsidies, at the cost of public education and human services,” said Jose Gonzalez, Sr Director, Researcher at New York Communities for Change. “The legislature must give the Comptroller the permanent ability to prevent abuse and corruption by auditing our state’s massive ‘economic development’ spending. Shining a light on the wasteful nature of economic development programs will make it clear that the key to developing New York is not through corporate giveaways, but through investing in our communities.”

“Budgets are about priorities. This is not a question of whether New York has the money for universal child care — it’s about whether we have the political will to spend it on meeting the urgent needs of New York’s families and communities, instead of building sports stadiums, giving it away to businesses and corporations, or stashing it away in a rainy day fund. The leaders of both the Assembly and the Senate have shown they do have that will with their own budget proposals. Will Governor Hochul decide to stand in the way, or will she put children and families first?” said Jasmine Gripper, Executive Director of Alliance for Quality Education.

New York is one of the most prolific users of “economic development” incentives in the country, spending roughly $10 billion annually at the state and local level on subsidies to select corporations. For all of that, New York has very little to show other than empty factories, underwhelming job-creation numbers, and a slew of corruption scandals.

The report is co-authored by the American Economic Liberties Project, Hedge Clippers, Little Sis, Public Accountability Initiative, New York Communities for Change, New Yorkers for Fiscal Fairness, Strong Economy for All, and the Invest in Our New York coalition.

Read the full report 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.