Tag: IDAs

Jun 9

2023

Tax subsidy reforms stall in Albany

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New York state lawmakers were poised to end the 2023 legislative session Friday with no action on a pair of bills that would have drastically reformed the state’s 107 industrial development agencies. Industrial development agencies, or IDAs, are public benefit corporations that have the power to grant property, sales and mortgage tax breaks to corporations who apply for those benefits, often in exchange for creating new jobs. The eight counties of Western New York have 15 IDAs at both the county and municipal levels. One bill, sponsored by Senator Sean Ryan, a Buffalo Democrat, would have barred IDAs from granting[...]

Posted 1 year ago

Jun 1

2023

The false promises of IDA subsidies

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In order for Western New York’s economy to remain stable, economic development officials argue that industrial development agencies need to grant tax breaks and other incentives. “People just aren’t going to build here unless they have incentives to help them to do that,” Mark Onesi, chair of the Niagara County Industrial Development Agency, told Investigative Post last year. “It’s expensive to do business here so we help as many people as we can.” Research, however, refutes those assertions. Economists have found between 75 and 90 percent of jobs created with tax breaks would have happened without the help.  “The system[...]

Posted 1 year ago

May 31

2023

IDA tax breaks cost schools millions

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 Editor’s note: This is the first of two stories on industrial development agencies. Tomorrow, we report on “perverse incentives” and other shortcomings in IDA programs. Any time Susan McGee’s children want to join an activity outside of the classroom — be it sports, music or other extracurriculars — it means one thing: a fundraiser. Raising money for extracurriculars may seem routine for a small, struggling Rust Belt city like Dunkirk, where McGee’s children attend school. But there’s another factor at play: The Dunkirk City School District loses out on an average of $5 million in revenue every year thanks[...]

Posted 1 year ago
Investigative Post