Initiative for Development Accountability
Read our report - COMIDA isn't Spanish for Free Lunch
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Comida Isn't Spanish for Free Lunch!
Industrial Development Agencies (IDA's) like COMIDA are regulated by the state and are empowered to give tax breaks to businesses. The IDA's give away the tax dollars of other governmental entities such as towns and school districts. Henrietta homeowners paid an additional $524 in taxes to make up for the abatements COMIDA has given out.
We've seen how COMIDA operates and it isn't a pretty sight.
What are we getting for COMIDA tax breaks?
- There was a net loss of jobs for COMIDA projects still active during 2002-
2004. COMIDA projects ran in the red for a total of 593 jobs.
- 68% (190 out of 280) of all COMIDA projects hadn’t delivered the jobs
that the businesses promised.
- Of the 357 COMIDA projects reporting during this time period, 105 lost jobs.
These subsidies to businesses means that schools and local governments are denied much needed revenue.
- Town governments lost $1.7 million to COMIDA deals during this three year
period.
- The county gave up $3.8 million in revenue for the privilege of losing 593 jobs
(that’s not even including the sales tax breaks. In 2003 COMIDA stopped
submitting sales tax subsidies to the Office of the State Comptroller)
- Schools were the biggest losers, sacrificing over $11 million to COMIDA
projects.
It's time to inject some accountability into the system.
- Towns and school districts need to be given the power to recoup tax subsidies from businesses that do not deliver on their job creation promises.
- IDA's need to do Community Impact Reporting to make sure that the subsidies do not harm the community by encouraging sprawl or by hurting other small business owners. We need also to know the impact on housing and infrastructure.
- Basic standards are needed such as employment, community, civil rights and environmental benefits standards in order to ensure that subsidy recipients create quality jobs, meet community needs, and have a positive environmental impact in our neighborhoods. Such standards would include paying prevailing wages, hiring locally and protecting greenfields.