Relates to financial assistance from an industrial development agency; repealer

◆ The sponsor's argument

Why James Skoufis says this is needed

Industrial development agencies, or IDAs, are public benefit corpo- rations created under the general municipal law and the public authori- ties law. Since their creation in 1969, they have offered billions of dollars of incentives to large multi-national corporations. The only data the state receives regarding job creation and economic benefits as a result of IDA activity is self-reported, and IDAs' exact effectiveness in this area is unknown. In the 2013-2014 budget, language was added to the general municipal law to prohibit IDAs from providing incentives to projects where the facili- ties or property would be primarily used for retail sales of goods or services. Exceptions to this retail ban were carved out as well. Per the budget briefing book, the goal of these changes was to "make IDAs more accountable by limiting the industries to which IDAs can offer State sales and other use benefits to...key sectors." Despite this ban, many IDAs continue to offer incentives to retail and food service establishments. According to the U.S. Bureau of Labor Statistics, the median wage for a food service worker nationwide in 2021 was $28,780 per year. The reason for the "highly distressed area" exemption to the retail ban is ostensibly to improve the conditions in the area by creating more jobs that will lift residents out of poverty. $28,780 per year is not enough to lift an individual out of poverty, never mind a family. Providing incentives to retail and food service entities do not benefit highly distressed communities. We need to prior- itize high-wage jobs that have a proven record of lifting people out of poverty.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.