Spotlighting economic development reform in N.Y. state

The economy is a top concern for voters across the country and in New York state. This is why, like many states, New York invests millions of dollars to grow businesses and a strong workforce. 

But how much of a return does the state get in those investments and how much oversight is there when it comes to the economic development grants? 

State Sen. James Skoufis joins JoDee Kenney to discuss these issues.

Skoufis says Industrial Development Authorities, or IDAs, exist in every county in the state. He says these are the agencies tasked with selectively giving out big property tax breaks to almost exclusively very large corporations that are looking to come to the state, or are threatening to leave in order to keep them in New York.

"And make no mistake, in some instances, these incentives are needed," Skoufis said. "They're warranted and absence the tax breaks, the business would not come here or would not stay here. But what I have found as chair of the Investigations Committee, and we did a full investigation into IDA practices, is that most of these IDAs do not do that basic due diligence in determining whether the corporation requires these tax incentives."

Skoufis says during budget negotiations, he put on the negotiating table a proposal to install a state-appointed monitor within the Orange County IDA monitor with veto power to act on behalf of taxpayers to move forward with a tax break that was not in the interest of taxpayers.

"That monitor was recently appointed," he said. "They have a three-year term at the end of which we can reevaluate whether to reopen the appointment. Also, it's important to note taxpayers aren’t footing the bill to pay for this monitor, the IDA is paying for the expenses associated with this."